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Tree House acquires Brainworks Learning Systems Private Limited

Enters north Indian states of Delhi-NCR, Punjab, Uttarakhand and J& K and, expands reach in Gujarat, Maharashtra, Goa, Karnataka, Andhra Pradesh and Tamil Nadu.

Mumbai, June 20, 2013: Tree House Education and Accessories Limited (‘Tree House”), India's largest self-operated pre-school chain, has successfully completed the Business Purchase Transaction with Brainworks Learning Systems Private Limited for a consolidated all cash value of INR 5 crs ( INR 50 Million).
With this transaction, Tree House has gained ownership of the Brainworks brand along with all its assets.  All 13 self-operated centres and 51 franchisee centers running under the Brainworks brand will now be a part of Tree House. These centers are located in Delhi & NCR, Punjab, Uttar Pradesh, Uttaranchal, Uttrakhand, Jammu & Kashmir, Gujarat, Maharashtra, Goa, Karnataka, Andhra Pradesh and Tamil Nadu. Tree House pre-school network including “Brainworks” and “Global Champs“acquisition reaches nearly 450 centers spread across the country.
Commenting on the occasion, Mr. Rajesh Bhatia, Managing Director of Tree House Education & Accessories Limited commented: “The Brainworks transaction reinforces our belief of consolidation happening in favour of quality players in the pre-school sector.  We believe that progressively Tree House will emerge as the dominant player in the preschool sector. The Brainworks network ensures presence in new geographies where we are not present. Brainworks has 64 (13 self-operated centres and 51 franchisee) centres operating under the “Brainworks” brand. We believe that as they absorb the Tree House method of education, curriculum and functioning, each of these centers will see significant improvement across all their operating parameters. Also cultural integration and human resource alignment will give a significant impetus to both brands”

“Brainworks is a welcome addition to our portfolio of offerings to parents. We believe that our offering in pre-school space is three-fold and completes the entire gamut of operations. The Tree House brand focuses on self-operated pre-schools, the Brainworks brand will focus on franchising and the Global Champs brand will focus on a self operated model to the urban and rural community helpers. This ensures a complete 360 degree product offering to every section of the community and society at large. Our Acquisition for a consideration of INR 5 Crs (INR 50 Million) will be Cash accreditive from year one. We believe that the Brainworks business shall pay-back the total amount invested over the next 36 months. Tree House has always believed and worked towards Shareholder value and wealth enhancement. This is a step-forward in the same direction.” Mr Bhatia added.

Tree House Education & Accessories Limited
Tree House Education & Accessories Limited (NSE code: TREE HOUSE; BSE code: 533540) runs quality preschools and also provides educational services to K-12 schools throughout the country.  Tree House has revolutionized the concept of pre-school pedagogy in India through the use of innovative teaching methods and child-focused personal care.  

For day to day updates on what’s happening at our centers, follow us on Facebook at www.facebook.com/Treehouse.playgroup  For more updates and information on the Company, please log on to www.treehouseplaygroup.net


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