Collins Acquisitions has again successfully brokered the acquisition of another center in Ontario for the Edleun Group Inc. This deal is particular good for all parties given the nature of the owners situation. We were able to assist them in ensuring the employees, children and parents have continuation of their current care however difficult the owenrs financial position has been. See more below form Edleun’s press release.
CALGARY, Feb. 3, 2012 /CNW/ – Edleun Group, Inc. (“Edleun” or the “Company“) (TSX-V: EDU), the leading provider of quality early childhood education and care in Canada, announced today the details of the additional GreaterToronto Area child care centre referenced in the press release dated December 12, 2011. The centre which comprises 195 licensed spaces is in a prime location in the centre of Oakville, Ontario one of the most attractive residential communities in Canada.
Edleun is purchasing the assets of this operating child care centre for $800,000. The centre is located in premises leased from a third party under a long term lease. The centre is located on the western edge of the Greater TorontoArea and within easy commute to a number of key employment zones.
“This centre is being acquired on very favourable financial terms,” said Dale Kearns, Edleun’s Chief Financial Officer. “The vendors were extremely passionate about creating and delivering a high-quality child care environment and experience, however had no prior experience in the child care industry, and were unfortunately underfunded to accomplish their goals. We estimate that $2 million was spent on improvements to create this centre, making it one of the most attractive and high quality “as-built” centres Edleun has seen in Canada. Moreover, with the implementation of Edleun’s operational systems and programming, we are confident that we can improve the occupancy of this well-located and attractive centre.”
“With this acquisition we have a prime example of the tangible benefits we can deliver for the communities we serve and the broader child care sector,” said Mr. Ty Durekas, President and CEO of Edleun. “In this instance, we were not only able to preserve needed spaces that potentially could have been lost completely due to the Vendor’s shortage of capital, but are ensuring that the families utilizing the centre have a high quality child care option that they know will remain viable for the long term.”
The timing of the completion of the transaction is subject only to finalization of the child care license. The centre is being acquired utilizing the Company’s available capital and hence is anticipated to be highly accretive to the company’s profitability.
Edleun currently has a total of 4,641 licensed spaces in 44 Early Learning & Care centres, including centres owned and transactions previously announced to acquire, redevelop or build.