AcadeMedia, a publicly listed Swedish education company, has acquired RE Skolor, the owner of Swedish Education Group, from its former private equity owner, The Riverside Company, for SEK 185 million (£16 million).
The acquisition, which was financed through ‘existing funds’, is subject to approval by competition authorities but is expected to close at the end of the second quarter of the fiscal year 2020/21.
The cash- and debt-free enterprise value of SEK 185 million is around five-times Swedish Education Group’s annual earnings before interest, tax, depreciation and amortisation of around SEK 35 million, and approximately half of its 2019/20 turnover of SEK 360 million.
In a statement, AcadeMedia said that “there is potential to develop and coordinate the business and thereby improve EBIT with approximately SEK 5 million. In addition, Swedish Education Group AB is expected to have a positive development with increasing number of students and improved EBIT during the fiscal year 2020/21.”
Swedish Education Group operates one compulsory school in Stockholm, one compulsory and upper secondary school in Stockholm for children with special needs, and three upper-secondary schools located in Stockholm, Gothenburg, and Malmö.
Swedish Education Group also runs several higher vocational educations, including Cybergymnasiet, Donnergymnasiet, Snitz, Enskede Byskola, and KYH.
During the 2019/20 fiscal year, the company had approximately 2,470 compulsory and upper secondary students, and more than 900 higher vocational education participants.
That year, the company employed 320 people.
“We look forward to work together with the staff and management at these units and to continue to develop the organization together. The acquisition is in line with AcadeMedia’s strategy and it strengthens our position as a long-term education provider,” said Marcus Stromberg, chief executive of AcadeMedia.
AcadeMedia operates more than 650 pre-schools, compulsory schools, upper-secondary schools and adult education centres across northern Europe, an area in which it claims to be the largest education provider. It has around 182,000 students.
Date published: 11 November 2020