Loyalist group acquires another Korean agency

29, January, 2015

anada-based Loyalist Group, a venture capital company specialising in international education, has announced the acquisition of Korean study travel agency Kim Okran, adding to its recent purchase of Uhak.com.

The website of Korean agency Kim Okran, which has been acquired by the Loyalist Group.

Loyalist Group, which operates English languages schools, career colleges and community colleges across Canada, will pay CAN$4.65 million for Kim Okran, which it was reported had consolidated revenue of CAN$4.7 million and adjusted EBTIDA (earnings before interest, taxes, depreciation and amortization) of CAN$0.9 million for the 12-month period ending December 2013.

“Building upon our recently completed acquisition of Uhak.com, the largest student recruiting agency in South Korea, the Kim Okran acquisition further enhances Loyalist’s vertical integration strategy,” said Loyalist Chief Executive, Andrew Ryu.

“By acquiring another one of our largest agency partners, we will be in a position to further reduce our direct costs of attracting students. The acquisition will also provide Loyalist with a strong source for growing its student population. We expect an annualised additional net benefit of approximately CAN$2.1 million within Loyalist from increased student numbers and reduced marketing expenses. The Kim Okran team will make a fine addition to the Loyalist family.”

Kim Okran has four branch offices in Korea and seven affiliated agency offices in Canada, as well as another in the Philippines. The agency’s website predominantly promotes schools in Canada and the Philippines.

At the time of writing, CAN$1 = US$0.79

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