The Tellus Group acquires an education company operating in Stockholm and Linköping

Published: August 23, 2021

Tellus Group’s subsidiary, Tellusskolan AB, is acquiring 125,458 shares, or 93.6 percent of Theducation’s shares. The purchase price, on a cash- and debt-free basis, amounts to SEK 26.6 million, with a probable additional payment of SEK 4.1 million contingent upon the extension of Brommaskolan’s building permit. An additional 6,700 shares (5 percent of the shares) will be acquired on equivalent terms shortly. The Tellus Group intends to acquire all shares in the company. In addition, a potential additional purchase price of approximately SEK 3.5 million will be paid, to be realized in July 2023. The additional purchase price is contingent upon the potential use of the company’s dormant school licenses and the schools’ enrollment figures during the 2022/2023 fiscal year.

The purchase price is to be financed through a vendor note of SEK 5.7–6.8 million and a bank loan of SEK 16.4 million. The remainder will be paid from the company’s own funds. The vendor note is due for payment 12 months after the closing date.

“With this acquisition, Tellusskolan will operate two strong and sought-after brands: Thea and Robinson. These two brands will retain and develop their unique characteristics while leveraging the benefits of coordination,” says Bijan Fahimi, CEO of the Tellus Group. “With this deal, we are increasing our ability to exceed our growth target of 30 percent per year for 2021 and 2022. We are more than doubling our elementary school operations and offering around 900 school spots in three municipalities.”

With this acquisition, the Tellus Group is expanding into a new county—Östergötland—and the growing city of Linköping. This also opens up new opportunities for the Tellus Group’s other subsidiaries, which operate preschools and childcare services, among other things.

Tellus School will thus serve as a platform for two strong brands. The Tellus Group’s acquisition strategy means that additional school operations will be added to this platform in the future, combining a diverse range of educational offerings with efficient administration and shared cutting-edge functions. The acquisition was signed on August 23 and will be completed on September 1.

During the period from July 1, 2020, through June 30, 2021, Theducation’s revenue, according to preliminary figures, amounted to SEK 56.8 million, and its operating profit before depreciation and amortization (EBITDA) amounted to SEK 3.0 million.

In addition to two school operations, Theducation also holds a dormant school license in Stockholm. Combined with the Tellus Group’s well-established network of property owners, this creates a strong opportunity for establishing additional schools in Stockholm in the future.

Anne Lindblad Silfverswärd, the current principal owner, will remain with the company until her retirement.

For further information
Bijan Fahimi, CEO of Tellusgruppen AB
bijan.fahimi@tellusgruppen.noboxdesign.se

Certified Adviser

The Company’s Certified Adviser is Mangold Fondkommission AB, which can be reached by phone at 08-503 015 50 and by email at ca@mangold.se.

MAR

This information is information that Tellusgruppen AB (publ) is required to disclose under the EU Market Abuse Regulation. The information was submitted for publication on August 23, 2021, at 2:15 p.m. CEST.

About Tellusgruppen AB (publ)

The Tellus Group is a long-term owner of well-managed companies in the education and childcare sectors. The Group currently operates 24 preschools and four elementary schools, and also provides babysitting and homework assistance.

The Tellus Group was founded in 2012 as the parent company of Tellusbarn (Tellusbarn was founded in 2007) and as a platform for future expansion in the education and childcare sector.

The Tellus Group’s business concept is to establish, operate, and develop profitable and growing subsidiaries in the childcare and education sectors. The company will serve as the parent company of a group that offers and delivers high-quality, innovative, and in-demand services within its respective fields.