The Energizer Bunny keeps on chugging...
CIBT Education buys Sprott-Shaw college for $12-million
2007-12-17 10:11 ET - News Release
Mr. Toby Chu reports
CIBT EDUCATION GROUP ACQUIRES SPROTT-SHAW COMMUNITY COLLEGE
CIBT Education Group Inc. has completed its acquisition of Sprott-Shaw Community College (SSCC).
Established in 1903, SSCC is the oldest and largest private career college in British Columbia. SSCC operates career and vocational schools, language training schools and a baccalaureate degree granting college through 17 campuses in Western Canada, and also has business locations in Vietnam, the Philippines, Jordan and China. In 2005, SSCC received its degree-granting status from the British Columbia Ministry of Advanced Education authorizing SSCC to offer bachelor-degree programs in business management, marketing and human resources. SSCC is a registered and accredited member of PCTIA (Private Career Training Institutions Agency) of British Columbia, an accredited member of British Columbia's Ministry of Advanced Education, and Alberta's Ministry of Advanced Education and Technology. Sprott-Shaw Community College is also a registered and certified trainer for a number of organizations in the trades and health care sectors.
As of fiscal year-end Aug. 31, 2007, SSCC reported audited annual revenues of $32.6-million with earnings before income tax depreciation and amortization (EBITDA) of $2.97-million. CIBT has paid $12-million in cash for the purchase of 100 per cent of SSCC representing an approximate multiple of four times EBITDA. Existing SSCC management has been retained to continue day-to-day operations and conduct SSCC's expansion into other parts of Canada and Asia by joining forces with CIBT schools in China.
"The closing of this transaction marks a significant turning point for both our organizations and we are excited about this partnership between CIBT and SSCC," commented Toby Chu, vice-chairman, president and chief executive officer of CIBT Education Group. "According to Chinese government estimates, over 250 million workers from rural China are gradually migrating to the coastal and urban cities of China in search of better paying jobs to improve their standard of living. These workers will require extensive vocational retraining or career-enhancing skills in order to secure better-paying jobs in China's modern and rapidly advancing economy. With 104 years of operating experience and over 140 additional career, vocational and degree-granting programs available to us, this expansive network of supporting infrastructure, teaching resources, knowledge and experience provided in this transaction with Sprott-Shaw Community College adds tremendous value to CIBT Schools in China and our overall business."
"We are excited about our future and the prospects ahead of us," commented Dean Dupperon, president and CEO of Sprott-Shaw Community College. "SSCC has earned an excellent reputation and a long-standing history in the Canadian education market for over a century. The combination of SSCC and CIBT will transform our two organizations into a global education player immediately. Our management team has extensive knowledge and experience operating a vast network of schools. Supported by CIBT's financial infrastructure and their experience in the public equities market, the combined synergies will enhance our existing operation and allow us to expand our Canadian presence while supporting CIBT's global expansion efforts."
As a result of the acquisition, CIBT Education Group will have a total of 38 delivery locations globally employing over 400 full- and part-time employees, a student population of 7,500 and combined revenues of approximately $42-million.
About SSCC
When Robert James (RJ) Sprott became partners with William Henry Shaw of Shaw Colleges in 1903, they opened the first Sprott-Shaw school, called Vancouver Business Institute. In 1913, Mr. Sprott and James Beatty opened Sprott-Shaw College in Victoria, which has been in continuous operation since its opening. The college survived economic recessions, two world wars and the Great Depression, all making its foundation stronger for today.
Following the Second World War, Sprott-Shaw continued its development by designing programs to retrain military personnel. With the college's radio broadcasting program, it established a broadcast station for the school with a signal being picked up all the way to Hawaii. The station was known as CKMO, which is now 1410 CFUN. The legendary broadcasters Jack Cullen and Ernie Rose were graduates of the school. Many well-known students including world-renowned artist Emily Carr spent time with Sprott-Shaw on their journey toward accomplishing their dreams.
Throughout the years, a number of individuals have taken on the leadership of Sprott-Shaw contributing to the college's development, but the real growth truly began in 1991 under the leadership of Mr. Duperron and Sherri Duperron. With their vision and tremendous determination, along with a team of highly trained staff, the college has grown to 17 locations across the province of British Columbia and Alberta which includes Sprott-Shaw Community College, Sprott-Shaw International Language College and Sprott-Shaw Degree College.
Employing the principles of adult education theory, the curriculum has expanded to include training in health care, tourism, hospitality, business, administrative and international studies, providing relevant skills for meaningful jobs in high-growth industries.
The modern campuses of Sprott-Shaw now train over 4,500 students each year. All locations feature small class sizes, qualified instructors, hands-on training and a friendly, appropriate learning environment for adults of all ages, and building solid reputation with both the private sector and government with its training excellence and enviable record of securing jobs for its graduates. |
