It was another day of gains for the G8 Education Ltd (ASX: GEM) share price on Friday.
The childcare centre operator's shares rose almost 1% to reach a two-year high of $4.41.
This brought its year-to-date return to an impressive 22%.
Why have its shares been on a strong run this year?
As well as delivering a solid full-year result, investors appear to have been pleased with an acquisition announcement the company made in September.
That acquisition will see the company take ownership of 19 existing early education and childcare centres from a single vendor.
The total purchase price for the 19 centres is $27 million and will be funded from existing cash and finance reserves.
As these 19 centres currently generate earnings before interest and tax of $7.2 million, the market appears to believe that G8 Education has got itself a great deal.
