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Mayfield Childcare (ASX:MFD) boosts offering with acquisition of two high-performing centres

ASX News, Consumer Discretionary
ASX:MFD      MCAP $35.41M
26 May 2023 12:59 (AEDT)

Source: Mayfield Childcare (Unrelated to this article)

Mayfield Childcare (MFD) has acquired two high-performing childcare centres, bringing its total offering to 38 centres across Queensland, Victoria and South Australia.

The company announced it would receive the keys to centres in Sandringham, Victoria and Home Hill, Queensland for a total purchase price of $2.4 million.

“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,” MFD CEO Ashok Naveinthiran said.

Mayfield reported the acquisition of both centres would generate $485,000 in EBITDA in CY23.

The Sandringham acquisition complements MFD’s existing centre in Cheltenham and strengthens its Bayside operations.

As for Home Hill, the purchase will expand the company’s operations south of Townsville and complements its existing centres in Wulguru and Cannonvale.

Mayfield announced it would continue to look at acquiring further high‐performing centres in areas that complement its existing footprint and offer scale and operational benefits at a regional level.

Shares in MFD last traded at $1.10 at 12:55 pm AEST.

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