Press release from Marketwire
Loyalist Closes Acquisition of King George International College
Wednesday, September 18, 2013
Loyalist Closes Acquisition of King George International College07:30 EDT Wednesday, September 18, 2013
TORONTO, ONTARIO--(Marketwired - Sept. 18, 2013) - Loyalist Group Limited ("Loyalist") (TSX VENTURE:LOY) is pleased to announce that, on September 17, 2013, it has completed the acquisition of KGIC Language College (2010) Corp. ("KGIC"), an accredited and licensed English-as-a-second-language (ESL) school, and KGIC Business College (2010) Corp. ("KGIBC"), a registered career college, in Toronto, Vancouver, and Victoria from CIBT Education Group Inc. and CIBT School of Business & Technology Corp. KGIC and KGIBC have a total of 8 campuses across Canada, in Halifax, Toronto, Vancouver and Victoria. This transaction represents the largest acquisition Loyalist has completed to date.
KGIC's trailing 12-month revenues to the end of August 2013, are expected to be over $25 million, with adjusted earnings before interest, taxes and depreciation and amortization of $2.7 million. The total purchase price for KGIC and KGIBC was $13.5 million, of which $9.5 million, subject to certain closing adjustments, was allocated in cash at closing. The remaining $4.0 million of the total purchase price, subject to certain post-closing adjustments, is payable by Loyalist by way of a non-interest bearing, secured, subordinated promissory note due March 17, 2014.
"This acquisition almost doubles our revenue and EBITDA," commented Loyalist CEO Andrew Ryu. "It also offers organic growth as it allows us to attract significantly more student business from Asia and strengthens the Loyalist brand as a dominant ESL player in Canada. We are pleased to welcome KGIC's talented management and staff to the Loyalist team."
About KGIC and KGIBC
KGIC and KGIBC consists of three education brands and currently operates 8 campuses in Canada with a trained staff of over 230. KGIC and KGIBC are committed to providing the highest level of academic training and customer service possible. Since 1996, KGIC and KGIBC have grown to become one of the largest and most reputable private language schools and career colleges in Canada.
Loyalist owns and operates private education schools in Toronto, Vancouver, and Victoria offering (i) ESL Courses for international students; (ii) training programs for teachers, commonly known as TESL; (iii) professional development courses; and (iv) corporate English for professionals.
Neither the 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.
This news release includes certain forward-looking information and statements within the meaning of Canadian securities laws. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Loyalist's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Loyalist's control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken, "will continue", "will occur" or "will be achieved". The forward-looking information or statement contained herein includes, but is not limited to, information with respect to prospective financial performance, anticipated capital funding and sources, proposed or potential acquisitions, estimated operating and sales costs, estimated market drivers and demand, business prospects and strategy, new markets for growth and financial position. By identifying such information and statements in this manner, Loyalist is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Loyalist to be materially different from those expressed or implied by such information and statements.
Any number of important factors could cause actual results to differ materially from these forward-looking information and statements as well as future results, including but not limited to: Loyalist's reliance on its South Korean contract; carrying on business and activities in international jurisdiction where Canadian laws do not apply; any loss of certain key personnel; levels of student enrolment; delays in rolling out the online education programs; competition in the educational services market; and currency fluctuations. Although Loyalist has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Although Loyalist believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Accordingly, readers should not place undue reliance on any forward-looking information or statements contained in this press release. The forward-looking information or statement contained in this news release is made as of the date hereof, and Loyalist does not undertake to update any forward-looking information or statement that is contained or referenced herein, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Loyalist or persons acting on its behalf is expressly qualified in its entirety by this notice.
FOR FURTHER INFORMATION PLEASE CONTACT:
Loyalist Group Limited
VP Corporate Development
Loyalist Group Limited