SCV Group Limited (SCV) has entered into a Binding Heads of Agreement to be completed by 7 May 2010 to purchase 100% of shares of Eureka Care Communities Pty Ltd for $400,000.
Eureka manages 12 ex Village Life villages which are identical in format to the majority of the villages managed by SCV. The purchase includes the transfer of the management team which currently operates Eureka. Eureka holds the management rights to 12 villages, 5 of which are in South Australia, 6 in Queensland and 1 in New South Wales. In virtually all cases, the villages managed by Eureka are in close proximity to villages managed by SCV, and therefore lend themselves to cost savings for the group through operational scale and concentration. The operating profit of the 12 Eureka villages for the 2010 year is estimated (subject to due diligence verification) at $700,000.
