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ABC Learning has finally offloaded one of its British businesses, Busy Bees Childcare Vouchers, as the company unwinds its recent acquisition binge and pays down a $1 billion debt called in by its bankers.
ABC Learning said yesterday it had sold the business for £90 million ($194 million) to the Australian share registry services provider Computershare. The sale was expected to yield a profit of between $90 million and $100 million, depending on currency movements and transaction costs, the company said.
The sale - which had been due to be completed in the previous financial year - is expected to be completed by September 1.
ABC Learning previously forecast a profit of up to $110 million on the sale of the vouchers business. It sells child-care vouchers to British companies, which offer them to their employees as part of salary programs.
Computershare said the Busy Bees voucher business would fit its business process and client focus well.
"The clear synergies between the Computershare and Busy Bees businesses make this a very exciting acquisition for us," its president and chief executive, Stuart Crosby, said. "It continues our strategy of building on our existing capacities to deliver enhanced services to clients."
The proceeds will help pay down the outstanding balance on ABC Learning's $1.05 billion debt facility. Its chief executive, Eddy Groves, said: "The sale price reflects the strong growth of the voucher business since our 2006 acquisition and will be a positive outcome for shareholders."
He said the sale would allow management to focus on its Australasian business.
Most of ABC Learning's other international assets are earmarked for sale, including its Busy Bees child care-centres and properties in Britain. The company said yesterday the sales process for the remaining British assets were "ongoing".
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ABC Learning announced late last month that losses would blow out to more than $437 million before tax, due to write-downs on child-care licences and other assets. It is due to announce its full-year results on Wednesday.
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ABC Learning shares closed 0.5c stronger yesterday, at 68.5c. Shares in Computershare closed 53c lower, at $9.46.
- reprinted from The Sydney Morning Herald