Afya Limited Announces Entering into of Purchase Agreement for the Acquisition of Faculdade Ciências Médicas da Paraíba
August 20 2020 - 4:44PM
Afya Limited, or Afya (Nasdaq: AFYA) today announced it entered
into a purchase agreement for the acquisition, through its
wholly-owned subsidiary Afya Participações S.A., of 100% of the
total share capital of Faculdade Ciências Médicas da Paraíba, or
FCMPB.
FCMPB is a post-secondary education institution
with government authorization to offer on-campus, undergraduate
courses in medicine in the State of Paraíba and medical course
represents 99% of its 2019’s Net Revenue. The projected Net Revenue
for FCMPB in 2024, when the institution will reach maturation, is
R$107.0 million representing an estimated post synergies EV/EBITDA
of 6.3x all derived from its medical school.
The aggregate purchase price is R$380.0 million,
of which: (i) 50% is payable in cash on the transaction closing
date, and (ii) 50% is payable in cash in four equal installments
through 2024, adjusted by the CDI rate.
The acquisition will contribute 157 medical
school seats to Afya, increasing Afya’s total medical school seats
to 2,023.
Commenting on the acquisition, Virgilio Gibbon,
Chief Executive Officer of Afya stated, “We are pleased that we
have been able to acquire another attractive medical school
operator. Growing our business through acquisitions is an important
component of our growth strategy as articulated during our IPO last
year. To date, we have now added slightly more than 570 seats or
57% of our started goal to add 1,000 seats over a three-year
period. Our recent acquisitions have all seen top line growth
coupled with margin expansion. I am very proud that our team has
been able to continue executing on our long-term strategic
initiatives even under the current challenging environment. We
maintain a healthy financial position giving us the ability to
adapt to the dynamic environment we are operating in.”
“We are well positioned to adapt and succeed
over the long term and with each acquisition we are scaling our
brand recognition,” concluded Mr. Virgilio.
Closing of the transaction is subject to
customary and usual conditions including approval from antitrust
regulators.
Afya’s management team will host a conference
call with investors August 21, 2020, 11:00 am EDT.
Investors may listen to the conference call (ID:
AFYA) by dialing +1 (844) 204-8586 or +1 (412)-717-9627 for US
Numbers and (11) 3181-8565 for BR Numbers. A live and archived
webcast of the call will be available on the Investor Relations
section of the Company’s website at
https://ir.afya.com.br/.
About Afya
Afya is a leading medical education group in
Brazil based on number of medical school seats, delivering an
end-to-end physician-centric ecosystem that serves and empowers
students to be lifelong medical learners from the moment they join
us as medical students through their medical residency preparation,
graduation program, and continuing medical education
activities.
Contact: Investor Relations:
ir@afya.com.br
Afya (NASDAQ:AFYA)
Historical Stock Chart
From Aug 2024 to Sep 2024
Afya (NASDAQ:AFYA)
Historical Stock Chart
From Sep 2023 to Sep 2024