Mayfield Childcare Limited (ASX: $MFD) Acquisition Announcement

Mayfield Childcare Limited (ASX: $MFD) has executed binding agreements to acquire seven operating centres and the business assets of Precious Cargo, an established early childhood education and care provider in South Australia. The acquisition purchase price is $4.8M, subject to agreed settlement adjustments in Mayfield's favor, estimated to be in the range of $2.2M to $2.4M primarily related to parent bonds and staff entitlements. The consideration payable at Completion of between $2.4M and $2.6M will be funded from existing working capital facilities. The acquisition, anticipated to complete by 31 August 2024, will expand the Company's footprint in South Australia from a single centre with 60 licensed places to a total of 942 licensed places across the region.

Executive Commentary

The acquisition of Precious Cargo represents a significant strategic milestone for Mayfield Childcare Limited. We are pleased to have successfully negotiated favorable acquisition terms, including the acquisition of the well-established Precious Cargo brand and its associated intellectual property. This acquisition will not only expand our licensed places across South Australia but also enable us to differentiate our existing operations in selected markets through the capabilities of Montessori pedagogy and curriculum. We are confident that this acquisition will contribute to the long-term growth and success of Mayfield Childcare Limited.

Summary of Acquisition and Outlook

Mayfield Childcare Limited (ASX: $MFD) has announced the execution of binding agreements for the acquisition of seven operating centres and the business assets of Precious Cargo in South Australia. The acquisition purchase price is $4.8M, with favorable settlement adjustments estimated to be in the range of $2.2M to $2.4M. The consideration payable at Completion will be funded from existing working capital facilities. This strategic acquisition is anticipated to be completed by 31 August 2024, expanding the Company's licensed places in South Australia from 60 to 942. The acquisition includes the well-established Precious Cargo brand and its associated intellectual property, providing opportunities for differentiation and growth. Mayfield Childcare Limited is optimistic about the long-term benefits and strategic value this acquisition will bring to the company's operations and market presence.