Global Education closes sale of Sprott Shaw College

Executive Summary

• Global Education Communities Corp. (GECC) has completed the sale of its subsidiary, Sprott Shaw College Corp. (SSCC), to BPP Education Group in an all-cash transaction.
• The transaction includes all 16 Sprott Shaw College campuses and two offices, while excluding Sprott Shaw Language College (SSLC), Vancouver International College (VIC), and Global Education Alliance (GEA), which remain within GECC.
• The sale follows six months of intensive efforts and marks a significant strategic shift for GECC, allowing it to retain its core student housing and remaining educational assets.

Key Details

• Transaction Structure: All-cash sale of Sprott Shaw College Corp. (SSCC) to BPP Education Group.
• Assets Transferred: All 16 Sprott Shaw College campuses and two offices.
• Assets Retained by GECC: Sprott Shaw Language College (to be renamed SSLC College), Vancouver International College (VIC), and Global Education Alliance (GEA) remain part of the Global Education Communities group.
• Operational Continuity: SSLC, VIC, and GEA will continue to refer students to Global Education Communities' student housing properties, alongside over 95 other colleges and universities in metro Vancouver.
• Transaction Timeline: The closing followed intensive efforts over the past six months.
• Seller Background: GECC took ownership of SSCC in 2007, navigating the 2008 economic crisis, the 2020 pandemic, inflation, high interest rates, and government-imposed reductions in international student numbers.
• Buyer Profile: BPP Education Group is a leading global education business and one of the largest privately owned higher-education institutions in Europe, established for almost 50 years, serving over 100,000 learners annually.
• Strategic Rationale (Buyer): The acquisition supports BPP's internationalization strategy and aims to meet the needs of domestic and international students in British Columbia with culturally aware and inclusive programs.
• Strategic Rationale (Seller): GECC management expressed gratitude to SSCC staff and confidence in SSCC's future under BPP's ownership.

Notable Quotes

• Toby Chu, Chairman, President and CEO of Global Education Communities: "We are very pleased to report the closing of this transaction following intensive efforts over the past six months... I am confident that Sprott Shaw College will continue to flourish under BPP's ownership."
• Graham Gaddes, CEO of BPP Education Group: "This acquisition marks an important milestone into BPP's internationalization and meeting the needs of both domestic and international students in British Columbia... The acquisition will support SSCC's plans to continue to be agile in meeting the needs of the domestic and international communities."