Childcare provider Affinity Education Group will shell out $80 million to buy 51 childcare centres across Australia.
Childcare operator Affinity Education Group is taking over 51 childcare centres across Australia for $80 million.
The acquisitions – through $65 million in cash and $15 million in Affinity shares – are on top of the seven centres it took over in March.
The company says it expects the expansion across Queensland, NSW, Victoria and Western Australia to deliver benefits through increased scale, earnings and geographic diversification.
It plans to fund the deal – expected to be completed within three months – through a combination of an entitlement offer, shares issue and a debt draw-down.
Affinity Education Group reported a net loss of $8.8 million for the 2013 calendar year.
On Tuesday, it was in trading halt and had last traded at $1.34.