Afya Limited Announces Closing of the Acquisition of UNIT Alagoas and FITS Jaboatão dos Guararapes
03 January 2023 - 8:04AM
Business Wire
Afya Limited, or Afya (Nasdaq: AFYA), in addition to the Press
Release released by the Company on October 13, 2022, today
announced the closing of its acquisition, through its wholly-owned
subsidiary Afya Participações S.A., of 100% of the total share
capital of Sociedade Educacional e Cultural Sergipe DelRey Ltda.
(“DelRey”), that encompasses the operations of Centro Universitário
Tiradentes Alagoas (“UNIT Alagoas”) and Faculdade Tiradentes
Jaboatão dos Guararapes (“FITS Jaboatão dos Guararapes”). The
transaction does not enclose the “UNIT” and “FITS” brands, which
will be licensed for Afya during the first year of operation.
The aggregate purchase price (enterprise value) was R$825.0
million before the deduction of Net Debt, of which R$575 million
was paid in cash on the date hereof, and R$250 million will be paid
in three annual installments, respectively, of R$150 million, R$50
million, and R$50 million, adjusted by the Brazilian interest rate
(SELIC). We expected an EV/EBITDA of 5.8x at maturity and post
synergies (2024).
The acquisition contributes 340 medical school seats to Afya,
increasing Afya’s total medical school seats to 3,163. This
translates to 22,774 medical students at maturity. With the
acquisition, Afya further consolidates its presence in the
Brazilian Northeast, entering a new state in the region.
2024 projected Net Revenue for UNIT Alagoas and FITS Jaboatão
dos Guararapes is expected to be R$261 million at full maturity,
with medical courses representing 87% of this amount.
There is a contingent payment related to 84 additional seats
subject to approval. If the Ministry of Education approves those
seats until December 31st 2024, it will result in a potential
additional payment of R$1.25 million per seat in UNIT Alagoas. The
additional payment will be adjusted by the Brazilian inflation rate
(IPCA) between this closing date and the date of its effective
payment.
As part of the transaction, and a strategic educational
partnership, Afya’s selected digital solutions - such as Medcel,
Whitebook, and Medical Harbour -, will be provided free of charge
for medical students of UNIT Sergipe and FITS Goiana, campuses not
included in the business combination.
“We are very excited and honored to announce the acquisition of
premium selected assets from UNIT, which will reinforce our
presence in the Northeast region of Brazil and mark our entrance
into the state of Alagoas through one of the most respected and
best academic quality institutions. This acquisition is a milestone
for Afya, representing the largest acquisition in our history.
Considering the 340 medical seats from UNIT, we have reached 3,163
seats and reinforced our leadership position in medical education.”
said Virgilio Gibbon, Afya’s CEO.
About Afya:
Afya is a leading medical education group in Brazil based on the
number of medical school seats, delivering an end-to-end
physician-centric ecosystem that serves and empowers students and
physicians to transform their ambitions into rewarding lifelong
experiences from the moment they join us as medical students
through their medical residency preparation, graduation program,
continuing medical education activities and offering digital
products to help doctors enhance their healthcare services through
their whole career.
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version on businesswire.com: https://www.businesswire.com/news/home/20230102005116/en/
Investor Relations Contact: Afya Limited ir@afya.com.br Media
Contact: Cíntia Moraes Marin cintia.marin@afya.com.br
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