CALGARY, Sept. 26, 2011 /CNW/ - Edleun Group, Inc. (TSX-V-EDU) ("Edleun" or the "Company"), the leading consolidator and developer of Early Learning & Care
centres in Canada announced today that it has entered into definitive
agreements to acquire five additional centres in Alberta and British
"We continue to execute on consolidation opportunities in the southern
Alberta and BC markets," said Leslie Wulf, Chief Executive Officer of
Edleun. "Our goal of establishing Edleun as the leading brand in our
core markets serves to enhance the visibility of the Company and its
delivery of high quality Early Learning & Care. At the same time,
clustering of the Company's centres helps us achieve operating
efficiencies and economies of scale."
Edleun is purchasing three operating child care centres as well as the
underlying real estate from a single vendor for $5.3 million. Two of
the centres are located in the city of Calgary while the third is
located in Okotoks, a community south of Calgary. Upon closing, the
acquisition of the three centres will add 266 licensed spaces to the
Company's growing portfolio.
The Company is also purchasing a single operating child care centre
along with the underlying real estate in Airdrie, located just north of
Calgary, for $900,000. Upon closing, this centre will add 70 licensed
spaces to the Company's portfolio.
In addition, Edleun is purchasing an operating child care centre in
Vernon, BC for $300,000. Related thereto, the Company will enter into a
long term lease commitment that will provide Edleun with a right of
first refusal to purchase the underlying real estate. This acquisition
will add 85 licensed childcare spaces to the Company's portfolio.
As with all acquisitions made by the Company, these child care centres
will undergo a full remodeling and upgrading process as well as the
implementation of Edleun's operating procedures, systems of quality
control, education curriculum and nutritionally-certified meal
programs. This strategy has proven to be very successful, well received
by the families the Company serves, and has greatly improved occupancy
and operating performance within centres in the Company's remodeled
portfolio. Previous quarterly reports have indicated that the company's
strategy has contributed significantly to improved margins and enhanced
"Since Edleun's growth from inception achieved positive Adjusted Funds
from Operations in the first quarter of 2011, fully covering our
corporate overhead and general and administration expenses, we expect
that these acquisitions which are being completed on favorable
financial terms will be highly accretive to the company's profitability
and cash flow," said Dale Kearns, Edleun's Chief Financial Officer.
Edleun currently owns and operates 29 child care centres and has
agreements in principle, including the foregoing, to acquire, redevelop
or build an additional 10 child care centres in Alberta and BC.
In total, the new acquisitions announced today will add 421 licensed
child care spaces to the Company's portfolio representing an increase
of 12.3%. This brings the total, including centres owned and
transactions previously announced to acquire, redevelop or build new
centres, to 3,801 licensed spaces in 39 Early Learning & Care centres.
The Company will complete these acquisitions utilizing its available
cash resources. Closings of these acquisitions are scheduled to occur
in the near future, and are subject to certain conditions precedent.
There can be no assurance that the acquisitions will be completed, or
if completed, what the final terms will be.
The Company also announced today that it has completed the redevelopment
of a property located in north west Calgary that was acquired in early
July 2011 for a purchase price of $830,000 into a child care centre.
This newly-remodeled centre, Highland Learning Centre, offers 75 new
licensed child care spaces and is located in a gentrified area of the
city that is particularly underserved.
"The redevelopment and opening of the Highland Learning Centre together
with the previously announced new "state of the art" Early Learning &
Care centres under development in Lake Chestermere and Mackenzie Towne,
and the additional redevelopment and new developments in process and in
our pipeline, are beginning to address the significant shortage in
available child care spaces in Canada," said Leslie Wulf. "Moreover,
our commitment to the renovation and remodeling of child care centres
subsequent to acquisition will have a meaningful impact on the quality
of Early Learning & Care centres across Canada. We are pleased that we
are able to serve Canadian families by being at the forefront of
creating new licensed child care spaces to address this need and at the
same time providing high quality and attractive environments for
children that offer industry leading educational curriculum,
programming and nutritional meal programs."
About Edleun Group, Inc.
Edleun is the leading provider of high-quality, Early Learning & Care in
Canada. The Company is committed to providing children, families and
employers with access to, and choice of, quality early childhood
education programs, helping Canadians balance their work and family
The Company's objectives include the acquisition and improvement of
existing child care centres and development of new child care centres
across Canada. Edleun is also pursuing the development of new "state
of the art" Early Learning & Care centres in a number of Alberta and
British Columbia residential communities which are currently
Certain statements in this Release which are not historical facts may
constitute forward-looking statements or forward-looking information
within the meaning of applicable securities laws ("forward-looking
statements"). Any statements related to Edleun's projected revenues,
earnings, growth rates, revenue mix, staffing and resources, and
product plans are forward looking statements as are any statements
relating to future events, conditions or circumstances. The use of
terms such as "believes", "anticipated", "expected", "projected",
"targeting", "estimate", "intend" and similar terms are intended to
assist in identification of these forward-looking statements. Readers
are cautioned not to place undue reliance upon any such forward-looking
statements. Such forward-looking statements are not promises or
guarantees of future performance and involve both known and unknown
risks and uncertainties that may cause the actual results, performance,
achievements or developments of Edleun to differ materially from the
results, performance, achievements or developments expressed or implied
by such forward-looking statements. Forward-looking statements are
based on management's current plans, estimates, projections, beliefs
and opinions. Except as required by law, Edleun does not undertake any
obligation to update forward-looking statements should assumptions
related to these plans, estimates, projections, beliefs and opinions
The Company undertakes no obligation, except as required by law, to
update publicly or otherwise any forward-looking information, whether
as a result of new information, future events or otherwise, or the
above list of factors affecting this information. Many factors could
cause the actual results of Edleun to differ materially from the
results, performance, achievements or developments expressed or implied
by such forward-looking statements.
Neither 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.
SOURCE Edleun Group, Inc.
For further information:
Leslie Wulf, Chief Executive Officer or Dale Kearns, Chief Financial Officer, of Edleun Group, Inc. at (403) 705-0362, or Nick Hurst of the Equicom Group, Inc. at (403) 218-2835.