Mayfield Childcare strengthens position with acquisition of two centres

Mayfield Childcare Limited, a childcare centre operator in Australia, has successfully completed the acquisition of two childcare centres, bolstering its presence in key operational areas.

The newly acquired centres, located in Sandringham, Victoria, and Home Hill, Queensland, contribute to Mayfield Childcare’s expansion plans in Bayside and south of Townsville.

The Sandringham acquisition strategically complements Mayfield Childcare’s existing centre in Cheltenham, enhancing the company’s operations in the Bayside region. With 60 approved places, the centre boasts a high occupancy rate of 86% as of the week beginning 15 May 2023.

In Home Hill, the acquisition aligns with Mayfield Childcare’s existing centres in Wulguru and Cannonvale, further expanding its operations in the southern region of Townsville. The centre in Home Hill has 80 approved places and maintains a current occupancy rate of 78% as of the same week.

Financed through existing debt facilities, the acquisition carried a total purchase price of AUD 2.4 million. It is projected to generate an estimated EBITDA of AUD 485,000 in CY23, with the purchase price reflecting a multiple of 5.0x CY23.

The centres were acquired from Genius Learning, a strategic partner involved in the development of childcare centres across Australia. Mayfield Childcare opted for an all-cash transaction for the Sandringham and Home Hill centres, as it aligned with their strategy to minimize dilution impact on existing shareholders.

Currently, Mayfield Childcare operates a total of 38 centres across Queensland, Victoria, and South Australia.

Mayfield Childcare said that it remains focused on acquiring high-performing centres that complement its existing footprint, enabling further regional scale and operational advantages. The company continues to pursue its growth strategy in the Australian childcare sector.

Ashok Naveinthiran — Mayfield Childcare CEO said: “The Company is pleased to have negotiated an all-cash transaction for two high-performing centres, on terms comparable to market and consistent with our strategy to purchase centres within existing regional clusters.”