Piper Alderman advises on sale of childcare centres to ASX-listed company
16/05/2022
National law firm, Piper Alderman, has advised the owner of the Genius Learning group on the sale of 14 premium childcare centres to ASX-listed Mayfield Childcare Limited (ASX: MFD) for up to $39.2 million, to be paid partly in cash and partly in Mayfield shares.
Genius Learning is a national provider of premium early education and care services for pre-school aged children operating under the Genius Childcare brand, with a significant portfolio of purpose-built childcare centres across Australia.
The 14 childcare centres sold to Mayfield are located in the south and east of the country, with 5 in Victoria, 8 in Queensland and 1 in South Australia. As part of the transaction, Genius Learning and Mayfield also entered into a 5-year incubator agreement whereby Genius Learning will identify, develop and trade-up childcare centres for sale to Mayfield.
General Counsel and Head of Transactions, Pat Allan said:
“The Genius Group was very excited to have completed this transaction and to establish a strong relationship with Mayfield Childcare. Importantly, the incubator relationship between Genius and Mayfield provides the Genius Childcare brand with a secure long term position in the industry. Hugh and the team at Piper Alderman tackled the various complexities of this transaction with outstanding commitment and we look forward to working together again.”
The Piper Alderman team led by Melbourne principal, Hugh Scales with partner, Carlyna Chhen and associate, Andrew Cutler, advised on all aspects of the transaction, including the preparatory internal restructure of the Genius Learning group, property lease and transitional services arrangements for the Genius Learning childcare centres, and licensing of the Genius Childcare brand and other intellectual property.
Hugh Scales commented on the deal:
“This was an interesting transaction, involving a range of commercial and regulatory challenges. The Genius Learning team led by managing director Darren Misquitta with general counsel Pat Allen were great to deal with, and quick to grasp and respond to the issues.”
Related media coverage
- Piper Alderman helps Genius Learning sell childcare centres to Mayfield Childcare – Australasian Lawyer, 26 May 2022
- Genius Learning Group sells 14 childcare centres to listed company – Lawyers Weekly, 24 May 2022
- Mayfield Childcare Limited’s $39.2 Million Acquisition of Genius Learning Group – Global Legal Chronicle, 18 May 2022 (Paywall)