English language teaching chain to open San Francisco school later this month.
EC, the Malta-based international English language tuition chain, has acquired a 50 per cent stake in Expanish, a fledgling Spanish teaching institution in Buenos Aires, Argentina, EC executive chairman Andrew Mangion told The Sunday Times.
After having successfully internationalised to the UK, US, and South Africa, EC will now apply its experience and knowledge to support the growth of the Expanish brand to other parts of Latin America. Mr Mangion is confident Expanish has the potential to develop its business ten-fold over the next few years to reach sales of $10 million.
Established in 2006 by young Argentine entrepreneurs Agustin Vignale and Alejandro Rched, Expanish has carved a name for itself by providing a range of high quality total immersion Spanish programmes in Buenos Aires and other Spanish-speaking destinations.
Mr Vignale and Mr Rched approached EC a year ago in their search for strategic investors to support their bid for international expansion. They travelled to Malta, the first destination on a carefully planned European roadshow, to meet EC's management team.
Within 48 hours they left the island with an offer. With due diligence procedures finalised and agreements signed, EC and Expanish have now got down to business.
"We have just signed a lease for an attractive six-storey building in central Buenos Aires to expand the existing school," Mr Mangion explained. "We will then continue to extend the Expanish brand's presence by establishing schools in other parts of Latin America. EC is also to expose Expanish to its considerable agent network to widen its client portfolio."
Meanwhile, EC is gearing up to open its centre in San Francisco later this month, its fourth operation in the US, in the wake of a strong wave of growth at the centres in Boston, San Diego and New York.
Occupying the entire 18th floor of a recently refurbished landmark 1930s building at 100 Montgomery Street, EC San Francisco is set in the heart of the business district, just off Market Street, the main thoroughfare. The school will house 16 classrooms accommodating 220 students and ancillary facilities, and a staff complement of 22.
EC - now employing over 700 full-time and part-time staff of 22 nationalities across its operation - will vie for business against global English as a foreign language (EFL) brands. Mr Mangion said EC's excellent reputation for high standards, its top 10 worldwide ranking, and experience in other major US cities will serve it in good stead at its newest destination.
EC San Francisco will be officially inaugurated in September.
Now operating nine centres in three continents, EC is to continue to focus its growth strategy on the UK and US, the world's first and second largest EFL markets, over the next two years, Mr Mangion confirmed.
After a "fantastic" 2009, the UK market is set for another strong year in 2010 as it maintains its status as the primary destination for English language tuition.
The weak sterling added to the UK's attractiveness over the past few months, and despite being faced with a few challenges, particularly a potential visa review depending on the outcome of the election next Thursday, EC's forecasts for 2010 for its centres in London, Cambridge and Brighton are promising.
EC's British operation has outgrown its Maltese arm, but Mr Mangion maintains Malta is an essential market for the group, in spite of last year's slowdown.
Mr Mangion, who chaired the Federation of English Language Teaching Organisations (Malta) for two years and spearheaded the implementation of several measures to raise standards in the local industry, is sure official statistics for 2009 will show a 20 per cent decline over 2008.
"The market will almost certainly also see a revenue drop of 20 per cent," he said. "Even if student weeks did not fall by the full 20 per cent, the average rate per student week decreased significantly as centres slashed their rates to try to attract business.
"We started 2010 with numbers down on last year, but they seem to be picking up and we are seeing a comeback for the all-important third quarter and the fourth.
"I would be very pleased if the Maltese industry managed to end the year at least on a par with last year or at least slightly up. I hope there will be further recovery in 2011."
The investment in EC Malta continues nevertheless. Over €400,000 has recently been channelled into the refurbishment of the school for adults in St Julian's.
EC has also taken over nearby premises previously occupied by the Bell school, which closed last year. Following extensive redecoration, EC has now relocated some tuition facilities from another centre to the corner property.