10th February 2014 - G8 Education to acquire $105m worth of childcare centres

G8 Education Limited (ASX:GEM) has inked contracts to buy 63 Australian childcare and education centres for about $105 million from various vendors. 

Following the acquisitions the provider of developmental and educational child care services will be operating 296 Australian centres.

Managing Director Chris Scott has described the purchase as a significant milestone for the company. The centres are expected to contribute to earnings before interest and tax immediately upon settlement.

G8 Education plans to fund the purchase from existing cash reserves and debt and hopes to settle the transaction by the end of April 2014. 

G8 Education reported a net profit of $11 million in the first half of the 2013 financial year.   These acquisitions were brokered by Collins Acquisitions.