Canada Pension Plan Investment Board (CPPIB) and funds affiliated with Baring Private Equity Asia (BPEA) have signed an agreement to acquire all outstanding shares of Nord Anglia Education.
Funds affiliated with BPEA are the majority shareholders of Nord Anglia and BPEA controls 67 per cent of Nord Anglia's issued and outstanding share capital.
The transaction values Nord Anglia at USD 4.3 billion, including repayment of debt.
The transaction is subject to shareholder approval and customary closing conditions.
Nord Anglia is a premium schools organisation. Listed on the New York Stock Exchange, Nord Anglia was founded in 1972. Its 43 international schools are located in China, Europe, the Middle East, North America and Southeast Asia. Together, they educate more than 37,000 students from kindergarten through to the end of secondary education. Nord Anglia has established collaborations with leading post-secondary institutions, including The Juilliard School, the Massachusetts Institute of Technology and King's College London.
"This investment in Nord Anglia is an excellent fit with our strategy to build a diversified portfolio capable of delivering strong, sustainable returns to the Canada Pension Plan Fund over the long term. The company, backed by a strong management team, is well positioned to benefit from the rising demand for high-quality education in the kindergarten to grade 12 category globally, has demonstrated strong financial performance, delivers stable cash flows, and provides a platform for future growth in this sector," says Deborah Orida, managing director, head of private equity Asia, CPPIB. "This is CPPIB's first direct equity investment in private education and through Nord Anglia we are able to gain both asset and geographical diversification."
Funds affiliated with BPEA have been investors in Nord Anglia since August 2008 when they completed a previous take private transaction alongside company management.
"Our long-standing association with Nord Anglia during a tremendous period of sustained growth has been extremely rewarding. BPEA is passionate about making education of the highest quality available to children all over the world, and we believe Nord Anglia is the ideal partner to achieve that goal. After nine years, we have developed a thorough understanding of the business and have high conviction that Nord Anglia's future is even more promising than its past," says Jean Eric Salata, founding partner and CEO of BPEA. "CPPIB is a partner that we know well and that shares our belief in the education sector and specifically Nord Anglia as a global leader in education. We look forward to growing Nord Anglia together."