Universal Technical Institute, Inc., the nation’s leading provider of trained technicians to the transportation industry, has completed its acquisition of MIAT College of Technology for a purchase price of $26 million in cash.
“On behalf of everyone at UTI, I am excited to officially welcome MIAT’s management, staff, students, faculty, and alumni to the team,” said UTI CEO Jerome Grant. “Completing this acquisition represents an important initial step in executing our growth & diversification strategy. It allows us to further expand our program offerings nationwide into growing fields that we believe will continue to be bolstered by technological advances and the global focus on sustainability. We also expect to realize significant revenue and cost synergies through this acquisition.”
MIAT is focused on serving students seeking a fast-tracked, industry-aligned high-value education that can lead to rewarding jobs and careers that help employers meet the demand for the skilled trades required in today’s workforce. MIAT offers vocational and technical programs in fields including aviation maintenance, wind power, robotics and automation, non-destructive testing, HVACR, and welding. On average over the last five years, MIAT has grown both new student starts and revenue by approximately 20% annually. MIAT is accredited by Accrediting Commission of Career Schools and Colleges (ACCSC).
With the addition of MIAT, the UTI network of schools currently serves more than 14,000 students in 14 disciplines across 14 campuses. UTI is also on track to open two additional campuses in 2022 under the Universal Technical Institute brand.
The acquisition is part of UTI’s previously announced growth and diversification strategy and will allow UTI to expand MIAT programs throughout UTI brand campuses and extend UTI’s presence and programs into the Canton, MI market where MIAT has been for over 50 years. Other expected synergies include operating and purchasing cost efficiencies and broadening the opportunity for student growth at the MIAT campuses by leveraging the national UTI marketing and admissions infrastructure. UTI’s growth and diversification strategy is centered around serving more students in fields where trained technicians are in demand and is expected to produce double-digit average annual revenue growth and continued margin expansion in the coming years. Included within this projected growth and margin expansion is the expected contribution from continued organic growth from the acquired campuses and programs MIAT offers, as well as anticipated revenue and cost synergies afforded by the acquisition. For the 12-month period ended September 30, 2021, MIAT reported more than 1,200 end of period active students, revenue of approximately $29 million and adjusted EBITDA of approximately $3.9 million.
Barrington Research Associates was the exclusive financial adviser to UTI in this transaction.
For internal reporting purposes, MIAT defines adjusted EBITDA as operating income adjusted for certain items that were originally classified within other income/expense, which is then further adjusted for items not considered part of the company’s normal recurring operations. Adjusted EBITDA is a non-GAAP financial measure, which is provided to supplement, but not substitute for, the most directly comparable GAAP measure. We choose to disclose this non-GAAP financial measure for MIAT because it provides an additional performance measure. Since the items excluded from this measure are significant components in understanding and assessing financial performance under GAAP, this measure should not be considered to be an alternative to net income (loss), or any other measures derived in accordance with GAAP as a measure of operating performance or profitability.
Founded in 1965 and with more than 225,000 graduates in its history, Universal Technical Institute, Inc. (NYSE: UTI) is the nation’s leading provider of technical training for automotive, diesel, collision repair, motorcycle and marine technicians, and also offers welding technology and computer numerical control (CNC) machining programs. The company has built partnerships with industry leaders, outfits its state-of-the-industry facilities with current technology, and delivers training that is aligned with employer needs. Through its network of 12 campuses nationwide, UTI offers post-secondary programs under the banner of several well-known brands, including Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI) and NASCAR Technical Institute (NASCAR Tech). The company is headquartered in Phoenix, Arizona.