/R E P E A T -- Acquisition of Five Additional Western Canada Centres Increases Edleun's Operating Portfolio by 12%/
September 27 2011 - 3:11AM
PR Newswire (Canada)
CALGARY, Sept. 26, 2011 /CNW/ - Edleun Group, Inc. (TSX-V-EDU)
("Edleun" or the "Company"), the leading consolidator and developer
of Early Learning & Care centres in Canada announced today that
it has entered into definitive agreements to acquire five
additional centres in Alberta and British Columbia. "We continue to
execute on consolidation opportunities in the southern Alberta and
BC markets," said Leslie Wulf, Chief Executive Officer of Edleun.
"Our goal of establishing Edleun as the leading brand in our core
markets serves to enhance the visibility of the Company and its
delivery of high quality Early Learning & Care. At the same
time, clustering of the Company's centres helps us achieve
operating efficiencies and economies of scale." Edleun is
purchasing three operating child care centres as well as the
underlying real estate from a single vendor for $5.3 million. Two
of the centres are located in the city of Calgary while the third
is located in Okotoks, a community south of Calgary. Upon closing,
the acquisition of the three centres will add 266 licensed spaces
to the Company's growing portfolio. The Company is also purchasing
a single operating child care centre along with the underlying real
estate in Airdrie, located just north of Calgary, for $900,000.
Upon closing, this centre will add 70 licensed spaces to the
Company's portfolio. In addition, Edleun is purchasing an operating
child care centre in Vernon, BC for $300,000. Related thereto, the
Company will enter into a long term lease commitment that will
provide Edleun with a right of first refusal to purchase the
underlying real estate. This acquisition will add 85 licensed
childcare spaces to the Company's portfolio. As with all
acquisitions made by the Company, these child care centres will
undergo a full remodeling and upgrading process as well as the
implementation of Edleun's operating procedures, systems of quality
control, education curriculum and nutritionally-certified meal
programs. This strategy has proven to be very successful, well
received by the families the Company serves, and has greatly
improved occupancy and operating performance within centres in the
Company's remodeled portfolio. Previous quarterly reports have
indicated that the company's strategy has contributed significantly
to improved margins and enhanced profitability. "Since Edleun's
growth from inception achieved positive Adjusted Funds from
Operations in the first quarter of 2011, fully covering our
corporate overhead and general and administration expenses, we
expect that these acquisitions which are being completed on
favorable financial terms will be highly accretive to the company's
profitability and cash flow," said Dale Kearns, Edleun's Chief
Financial Officer. Edleun currently owns and operates 29 child care
centres and has agreements in principle, including the foregoing,
to acquire, redevelop or build an additional 10 child care centres
in Alberta and BC. In total, the new acquisitions announced today
will add 421 licensed child care spaces to the Company's portfolio
representing an increase of 12.3%. This brings the total, including
centres owned and transactions previously announced to acquire,
redevelop or build new centres, to 3,801 licensed spaces in 39
Early Learning & Care centres. The Company will complete these
acquisitions utilizing its available cash resources. Closings of
these acquisitions are scheduled to occur in the near future, and
are subject to certain conditions precedent. There can be no
assurance that the acquisitions will be completed, or if completed,
what the final terms will be. The Company also announced today that
it has completed the redevelopment of a property located in north
west Calgary that was acquired in early July 2011 for a purchase
price of $830,000 into a child care centre. This newly-remodeled
centre, Highland Learning Centre, offers 75 new licensed child care
spaces and is located in a gentrified area of the city that is
particularly underserved. "The redevelopment and opening of the
Highland Learning Centre together with the previously announced new
"state of the art" Early Learning & Care centres under
development in Lake Chestermere and Mackenzie Towne, and the
additional redevelopment and new developments in process and in our
pipeline, are beginning to address the significant shortage in
available child care spaces in Canada," said Leslie Wulf.
"Moreover, our commitment to the renovation and remodeling of child
care centres subsequent to acquisition will have a meaningful
impact on the quality of Early Learning & Care centres across
Canada. We are pleased that we are able to serve Canadian families
by being at the forefront of creating new licensed child care
spaces to address this need and at the same time providing high
quality and attractive environments for children that offer
industry leading educational curriculum, programming and
nutritional meal programs." About Edleun Group, Inc. Edleun is the
leading provider of high-quality, Early Learning & Care in
Canada. The Company is committed to providing children,
families and employers with access to, and choice of, quality early
childhood education programs, helping Canadians balance their work
and family lives. The Company's objectives include the acquisition
and improvement of existing child care centres and development of
new child care centres across Canada. Edleun is also pursuing
the development of new "state of the art" Early Learning & Care
centres in a number of Alberta and British Columbia residential
communities which are currently underserved. FORWARD-LOOKING
STATEMENTS: Certain statements in this Release which are not
historical facts may constitute forward-looking statements or
forward-looking information within the meaning of applicable
securities laws ("forward-looking statements"). Any statements
related to Edleun's projected revenues, earnings, growth rates,
revenue mix, staffing and resources, and product plans are forward
looking statements as are any statements relating to future events,
conditions or circumstances. The use of terms such as "believes",
"anticipated", "expected", "projected", "targeting", "estimate",
"intend" and similar terms are intended to assist in identification
of these forward-looking statements. Readers are cautioned not to
place undue reliance upon any such forward-looking statements. Such
forward-looking statements are not promises or guarantees of future
performance and involve both known and unknown risks and
uncertainties that may cause the actual results, performance,
achievements or developments of Edleun to differ materially from
the results, performance, achievements or developments expressed or
implied by such forward-looking statements. Forward-looking
statements are based on management's current plans, estimates,
projections, beliefs and opinions. Except as required by law,
Edleun does not undertake any obligation to update forward-looking
statements should assumptions related to these plans, estimates,
projections, beliefs and opinions change. The Company undertakes no
obligation, except as required by law, to update publicly or
otherwise any forward-looking information, whether as a result of
new information, future events or otherwise, or the above list of
factors affecting this information. Many factors could cause the
actual results of Edleun to differ materially from the results,
performance, achievements or developments expressed or implied by
such forward-looking statements. Neither TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release. Edleun Group, Inc.
CONTACT: Leslie Wulf, Chief Executive Officer or Dale Kearns,
ChiefFinancialOfficer, of Edleun Group, Inc. at (403) 705-0362, or
Nick Hurst of theEquicom Group, Inc. at (403) 218-2835.
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