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(Bloomberg) — Nord Anglia’s owners are speaking to investors about jointly putting in at least $5 billion of capital into the international school operator, according to people familiar with the matter.
The company’s major shareholders — EQT AB and Canada Pension Plan Investment Board — are looking to reinvest in Nord Anglia and have been in talks with investors including Neuberger Berman for part of the additional funds, the people said.
As part of the deal, EQT will reinvest in Nord Anglia through a different fund, the people said. Discussions are ongoing and a final agreement hasn’t been reached, the people said, asking not to be identified because the matter is private.
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The Nord Anglia’s owners also considered a sale to other private equity firms and was targeting a valuation of about $15 billion, the people said. It opted for the current structure after offers from rival buyout firms didn’t meet expectations, the people said.
Representatives for CPPIB, EQT, Neuberger Berman and Nord Anglia declined to comment.
Nord Anglia, founded in 1972, operates more than 80 international schools including boarding schools across Asia, Europe, the Middle East and the Americas, according to its website. It offers education from kindergarten to the end of secondary school.
A potential sale of the business would have ranked as one of the largest buyout deals in Europe this year but the process stalling is yet another sign that buyers and sellers are finding it hard to agree on valuations on the bigger transactions amid higher rates and slower economic growth.
Education has been a busy sector for private equity deals in recent years. A consortium led by Brookfield Asset Management is investing in GEMS Education, a Dubai-based family business founded by Indian immigrants. KKR & Co. is exploring options for EuroKids International, including selling its controlling stake in the Indian pre-school and early-learning chain, Bloomberg News has reported.
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