G8 Education proves childcare centres are a worthy investment
Company expanded its population of 80 childcare centres in 2010 to 400 in just six years – including 20 in Singapore
With its network of 470 childcare centres comprising a 7 per cent market share in Australia, G8 Education’s journey to become the country’s largest for-profit childcare and early education provider to date is an outstanding business development case study.
Driven by an aggressive growth strategy to acquire a significant foothold in Australia’s childcare sector and benefit from economies of scale, the company quickly grew its population of 80 childcare centres in 2010 to 400 in a span of just six years – including 20 in Singapore.
The same strategic key to success has now unlocked the door for G8 Education’s further expansion in Asia. In fact, China First Capital Group, a Hong Kong-listed investment firm, has acquired a 12 per cent stake in the company for US$210 million.
“Our experience in building a successful business from scratch is a key point of attraction as a partner, which is ideally suited to a developing market with great potential,” says Gary Carroll, managing director and CEO. “Our main opportunities are incremental growth in Singapore and entering China’s growing market. We’re keen to talk to players with really strong operational experience in China who are very tapped into the local market. There is certainly a strong potential for us to bring our expertise there.”
G8 Education employs 10,000 people and maintains annualised revenues of around US$800 million. Focused on understanding the childcare market and changes in the work field, the company is committed towards providing high-quality customer service built on its core values of compassion, dedication, innovation, integrity and passion.
“Our company purpose is quite clear – to provide engaging care and education services that add value to families – and we have lots of opportunities to improve in that area,” Carroll says. “We also think there’s a real opportunity to build a single, powerful G8 culture. We’re about building that customer-centric, team-based culture founded on our values and our purpose.”