Loyalist Group purchases KGIC

September 05, 2013

The Loyalist Group, an investor in international education in Canada, has announced the acquisition of King George International College and King George International Business College (collectively KGIC) from CIBT Education Group for a fee of CAN$13.5 million.

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KGIC, an ESL school and a career college with eight campuses across Canada, becomes the Loyalist Group’s largest investment to date and adds to a portfolio of seven different college brands.

An initial fee of CAN$9.5 million will be paid in cash on closing, followed by an additional CAN$4 million payment, subject to certain post-closing adjustments, due by March 2014. The acquisition is expected to close on September 12.

“This is more than our biggest acquisition to date, it’s a transformative event for our company,” said Loyalist Group CEO Andrew Ryu in a statement. “First, it increases our revenue by approximately 40 per cent and takes us to a size that cements our position as a preferred destination for international students that also attracts a bigger investor base.

“Second, this acquisition will demonstrate the scalability of our business model along with the ability to create both revenue and cost synergies. Now that our platform is strong enough to support big increases in revenues, we expect to see progressive and accretive profit growth as KGIC and subsequent acquisitions are integrated into the Loyalist platform.”

KGIC recorded revenue of CAN$25 million in the year ending 31 August 2013, with over 8,000 international students, said a statement from CIBT, who purchased KGIC in 2010 for CAN$4.5 million. “We are pleased with our return on investment from this transaction in 3.5 years,” said Toby Chu, President and CEO of CIBT Education Group.

“Going forward, CIBT will concentrate its efforts on growing our portfolio of schools in Canada and abroad under the brands of Sprott Shaw College, Ascenda School of Management and CIBT School of Business China. We will focus on the Canadian domestic market as our base, and expand our international network of student recruitment for substantial growth,” Chu added.

The Loyalist Group is featured in a special report on takeovers and mergers in the current issue of Study Travel Magazine.

At the time of writing, CAN$1 = US$0.95

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