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Edleun commences national expansion through acquisition of six centres in British Columbia

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Author: 
Edleun Group Inc.
Publication Date: 
24 Mar 2011

Text of press release:

Edleun Group, Inc. (TSX-V:EDU) ("Edleun" or the "Company")

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announced today that it has entered into a definitive agreement to acquire six centres in the Greater Vancouver and Kelowna, British Columbia markets. Edleun currently owns and operates 20 centres in Alberta. The Company continues to process an active pipeline of potential acquisitions and opportunities to develop new centres as part of a sustainable growth strategy that will provide families with greater options and access to high quality educational childcare.

"This acquisition represents our first outside of Alberta and allows us to begin building brand awareness around our quality child care offering in the important BC Coast and Kelowna markets," said Leslie Wulf, Chief Executive Officer of Edleun. "This acquisition covers both existing operating centres and the creation of new licensed spaces for the underserved Kelowna market."

Three of the operating centres are located in the Greater Vancouver area, with a further two situated in Kelowna. The Company is acquiring the existing child care operations at the five centres, with a total licensed capacity of 422 spaces, for approximately $4.1 million and entering into leasehold arrangements for the premises.

As part of the transaction, the Company is also acquiring a redevelopment property in Kelowna that will be converted into a child care facility for a total purchase price of $1 million. The Company will complete redevelopment of the existing building creating 111 new licensed spaces. The Company has identified Kelowna and the surrounding region as an area with a high demographic demand for child care, with limited supply, and an ideal market for Edleun to create new licensed child care spaces.

The Company is also pleased to announce that one of the founders of the vendor will be joining Edleun as the Provincial Manager for British Columbia. This key addition to the Edleun team has more than 15 years' experience in the BC market and will be a valuable contributor to the Company as it expands operations across the province.

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The acquisitions and subsequent redevelopment will add 533 licensed child care spaces to the Company's portfolio. This brings the total, including centres owned and transactions previously announced to acquire or build new centres, to 2,777 spaces across 29 centres.

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The Company will fund the completion of this acquisition utilizing its currently available financial resources.

The closing of the acquisition is scheduled to occur in the near term future, and is subject to certain conditions precedent. There can be no assurance that the acquisition will be completed, or if completed, what the final terms will be.

- reprinted from Canadian News Wire

press release
Entered Date: 
30 Mar 2011
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