Loyalist Signs Definitive Agreement to Acquire Pan Pacific College Press Release: Loyalist Group Limited – 33 minutes ago
TORONTO, ONTARIO--(Marketwire - Jan. 10, 2013) -
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Loyalist Group Limited ("Loyalist") (TSX VENTURE:LOY) is pleased to announce that it has entered into a definitive agreement for the acquisition of Pan Pacific College ("PPC"), an English-as-a-second-language school based in Vancouver.
PPC had revenues of $2.7 million in the most recent 12-month period and has average monthly enrolment of over 200 students. Loyalist will pay $950,000 for PPC. Of the total, $300,000 is payable in cash. In addition, on closing Loyalist will issue a promissory note to the vendor in the amount of $150,000, with the remainder of the purchase price to be satisfied through the issuance of 1.25 million common shares. The acquisition is expected to close on or about January 31, 2013.
"This acquisition, our ninth in the past two years, fits our consolidation model very well," said Loyalist CEO Andrew Ryu. "We are paying approximately one third of total revenue and expect to quickly bring PPC's profitability in line with the rest of our schools. Given our operating leverage, most of the added profit from this acquisition should flow to the corporate bottom line. We expect to continue to demonstrate the benefits of our economies of scale in the New Year."
Completion of the transaction is subject to the approval of the TSX Venture Exchange.