Anchorage wins rival's backing for buyout of Australia's Affinity

The private equity firm previously won support for a A$208.3 million ($150 million) deal priced at A$0.90 per share. This bid has now been increased to A$0.92 per share in cash, according to a regulatory filing. G8, which is Affinity's largest shareholder with a 19.89% stake, has agreed to vote in favor of the deal. It will also not extend its own takeover bid for the business.

G8 had offered A$0.80 per share in cash or one G8 share for every 4.25 Affinity shares. The Affinity board advised shareholders to reject the deal, saying that neither offer is fair or reasonable.

Affinity owns and operates 161 childcare centers nationwide and manages a further six facilities. It has a daily licensed capacity of 12,682 children and focuses on those aged six weeks to 12 years. The company has been increasing its footprint, acquiring 68 childcare centers in 2014 and 36 in the first half of 2015.

It is the second-largest listed childcare operator in Australia after G8, which owned 457 childcare centers domestically and 18 in Singapore as of June 2015.

Affinity's revenue came to A$111.9 million in 2014, up from A$3.67 million for the period from May 21 to December 31, 2013. The net loss was A$4.12 million, down from A$8.86 million in the earlier period. EBITDA reached A$1.5 million in 2014 - rising to A$17.9 million if acquisition and integration expenses are excluded - compared to a loss of A$9.3 million in 2013.

Anchorage is currently investing its second fund, which closed at the hard cap of A$250 million in April 2013 after less than six months in the market.

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• Topics
• Buyouts
• Australasia
• Consumer
• buyout
• Education
• Anchorage Capital Partners
• Australia