ABC Learning Centres chief executive Eddy Groves has signalled an interest in acquiring more childcare centres in the US as the company starts to buy some of the franchised centres it obtained through its deal with the Learning Care Group.
ABC last year announced the $218 million purchase of the Learning Care Group in the US to become the world’s largest listed childcare company. But of the 460 childcare centres operated through the Learning Care Group, 130 are franchised operations such as the Tutor Time centres in southern California.
The company said yesterday that it had acquired 24 of the Tutor Time Centres for $45.5 million. Mr Groves said ABC would try to get up to 80 more of the 130 franchised centres.
Tutor Time’s agreement with GFGTT Holdings, which owned the franchised centres, also provides for the development of centres on the US west coast, with two now being built.
Under an arrangement with the Learning Care Group, the franchised centres pay a fee for receiving some benefits from the group but retained most of their profits. Under yesterday’s deal, which will be settled in August, the profits from the centres will go directly to ABC.
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