Three private equity powerhouses, Bain Capital, Permira and Veritas Capital, are in the final stages of a fierce auction for the school operator Nord Anglia, in what could be one of Europe’s largest deals this year, according to a report by the Financial Times.
The report cites unnamed sources familiar with the process, as coffering that final bids for a majority stake in the London-based group are due later this month, potentially valuing the business at up to $15bn. Other bidders might still enter the fray, one source cautioned.
Nord Anglia’s current owners, Swedish private equity firm EQT and the Canada Pension Plan Investment Board (CPPIB), are expected to retain a stake in any transaction. Additionally, Singapore’s wealth fund GIC is anticipated to co-invest alongside the winning bidder, the sources said.
This deal is set to be one of the largest in Europe this year, comparable to Abu Dhabi’s National Oil Company’s potential €14.4bn acquisition of German chemical group Covestro.
According to one FT source, given the size of the deal, any new owner may have to look to an initial public offering (IPO) to generate a return, an option that EQT and CPPIB may consider should the sale fail to progress. While the European market for new listings has seen its strongest start to the year since the Covid-19 pandemic, it remains volatile.
Nord Anglia, which operates 87 international day and boarding schools across 33 countries, including China, India, the Middle East, and the Americas, serves over 85,000 students up to age 18, and employs11,000 teachers and thousands of support staff. Over the past two years, the company has added 10 schools, primarily through acquisitions. Notable institutions in its portfolio include Oxford International College in the UK and Avenues in New York.
EQT’s Baring Private Equity Asia and CPPIB acquired Nord Anglia in 2017, delisting it from the New York Stock Exchange in a $4.3bn deal, including debt.
