Australian childcare facilities operator Think Childcare Ltd. said Dec. 19 that it has completed the acquisition of a childcare center from Edhod Pty Ltd. for a consideration of A$1.9 million. Edhod is an incubator partner of Think Childcare.
The childcare center acquired by Think Childcare is a 99 licensed place center.
Think Childcare said the price for the acquisition, which was completed Dec. 15, was based on 4x the center's EBITDA.
The sale agreement for the acquisition has an earn-out of up to A$387,000 and a clawback up to the full purchase price. The earn-out/clawback is also based on 4x the center's EBITDA under its first year of ownership by Think Childcare.
Think Childcare said the acquisition is in line with its forecasts and is the fifth center it has acquired during the 2017 calendar year.