This deal is bigger than the market knowsLoyalist Group to acquire Kim Okran agency This deal will open up a lot of doors of opportunity and the market will understand.
LOYALIST TO ACQUIRE SECOND AGENCY IN SOUTH KOREA
Loyalist Group Ltd. has entered into a definitive agreement to acquire Kim Okran International Studies Centre, a student recruiting agency based in South Korea that provides information and registration services to South Korean students looking to study abroad, particularly in Canada.
Kim Okran had consolidated revenue of $4.7-million and adjusted earnings before interest, taxes, depreciation and amortization of $900,000 for the 12-month period ended December, 2013. Kim Okran's revenue is based upon commissions earned on gross student tuition fees of approximately $20.0-million.
"Building upon our recently completed acquisition of [the Uhak website], the largest student recruiting agency in South Korea, the Kim Okran acquisition further enhances Loyalist's vertical integration strategy," said chief executive officer Andrew Ryu. "By acquiring another one of our largest agency partners, we will be in a position to further reduce our direct costs of attracting students. The acquisition will also provide Loyalist with a strong source for growing its student population. We expect an annualized additional net benefit to Loyalist of approximately $2.1-million in the year following closing of the acquisition from increased student numbers and reduced marketing expenses. The Kim Okran team will make a fine addition to the Loyalist family."
Huge and more to come our way. glta