Canadian-based CIBT Education Group Inc. has agreed to sell its subsidiary King George International College & King George International Business College (KGIC) to Loyalist Group Limited, a consolidator of English as a Second Language companies, for CAN$13.5 million subject to certain adjustments.
CIBT acquired the college for CAN$4.5 million in 2010 in order to improve English language skills of students applying to its degree and career diploma programmes. Under CIBT’s direction, revenue grew from CAN$16.19 million to CAN$25 million and enrolments rose from 5,000 international students to over 8,000 as of August this year.
“This is more than our biggest acquisition to date, it’s a transformative event for our company,” said Loyalist CEO Andrew Ryu in a statement. “…It increases our revenue by approximately 40% and takes us to a size that cements our position as a preferred destination for international students that also attracts a bigger investor base.”
“Going Forward, CIBT will concentrate its efforts on growing our portfolio of schools in Canada and abroad”
The acquisition is expected to close on or about September 12, 2013. Included in the purchase and sale agreement is the term that CIBT will continue to operate all KGIC operations in China, rebranded earlier this year, as exclusive licensee.
Toby Chu, President and CEO, Vice Chairman of CIBT commented that the sale represents a change in direction for the company that was founded in 1994, and owns and operates a network of business, technical and language colleges in North America and Asia enrolling over 13,000 students annually.
“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.”
Future plans for expansion include acquiring additional schools with long-term programmes in career technical training and university level degree programmes.
It also intends to develop a chain of elite kindergarten to grade 12 schools in Asia serving as feeders to its school partners in Canada and the United States.
