Minter Ellison Rudd Watts and Chapman Tripp have advised on a $19.3m deal which will see the Intueri Education Group acquire the NZ Institute of Sport (NZIS), which also includes the New Zealand College of Massage (NZCM).
Minter Ellison Rudd Watts advised Intueri Education– a private training college dual-listed on the NZX and ASX – while Chapman Tripp acted for the vendors.
Intueri Education made the announcement of the acquisition last Thursday, with completion of the deal conditional on regulatory and other customary approvals, including Overseas Investment Office approval.
“The transaction was a very positive step for Intueri, which is listed on the NZX and ASX, in continuing its growth strategy and its quality mandate with acquisitions in the vocational training sector that support this strategy,” lead legal advisor acting for Intueri Education, Minter Ellison Rudd Watts partner Mark Forman said.
“It represents a continuation of a busy period of activity for the firm and in the vocational education sector.”
The Chapman Tripp team consisted on partner Geof Shirtcliffe, special counsel Nick Lough and solicitor Chris Gillies.
The purchase price for 100% of shares in NZIS and NZCM is 5.5 times expected 2016 EBITDA, or $19.25m.
An initial payment of $17.6m – funded by Intueri’s current debt facilities – will be made upon completion of the acquisition.
A further payment is set to be made in March next year, with the balance paid in March 2017.
Inteuri chief executive Rob Facer said the company aimed to use NZIS’ model to refine strategies in terms of engagement with the Maori and Pasifika communities.
“Broadening the range and quality of our course provision forms the basis of our growth strategy. The ability to offer sports-based programmes will offer significant opportunities to further increase our international student numbers. We are delighted to welcome NZIS as a NZQA Category 1 provider to the Intueri Group.”
NZIS founder and chief executive John Fiso hailed NZIS joining New Zealand’s largest group of private training providers as a significant milestone.
“Intueri’s focus on quality is a big draw card for us and our two organisations share a similar values structure. I am looking forward to working with the Intueri management team as well as with the other schools that form part of the Group.”