Four years after Montessori Academy founders Charles and Colette Assaf won the backing of a Chinese early childhood education services provider, the pair are back in the driver’s seat.
Street Talk can reveal the Assaf family has struck a deal to buy back 16 per cent of the childcare centre operator from Greentown Education Group, increasing its stake to 60 per cent and regaining majority control.
Greentown took a 56 per cent stake in Montessori in 2019 in a deal that valued the childcare provider, which had 23 centres across Australia, at $120 million on an enterprise value basis. Street Talk understands the business has more than doubled to 56 centres since, after targeting greenfield site expansion. Greentown disclosures show Montessori traded with an enterprise value around $245 million and a 9.4-times EBITDA multiple, a figure which takes into account its expected earnings and interest-bearing debt.
With the childcare sector heating up, this column wouldn’t be surprised to see bankers add Montessori Academy to their list of IPO prospects. The terms of the Greentown share disposal and buyback include an option for Assaf, the former chief executive of Nexon Asia Pacific, to acquire the remaining stake of about 35 per cent in three years. About five per cent will stay with the management.
Read the full story tomorrow and more on the Street Talk page.
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