M&A
confidence high
sentiment positive
materiality 0.60
UTI acquires remaining 72% stake in Lisle campus for $28.2M cash plus debt assumption
UNIVERSAL TECHNICAL INSTITUTE INC
- Paid $28.2M cash plus assumed debt to buy out joint venture partner's ~72% stake, now owns 100% of 2611 CWD.
- Total outstanding debt on the campus is ~$18.5M; UTI is sole obligor after the transaction.
- Campus is 187,000 sq ft on 20 acres with over 900 students; operations unchanged.
- Company plans to refinance assumed debt with new financing to benefit from current interest rates.
- CFO expects significant EBITDA and cash flow benefits compared to leasing the facility.