CPPIB president and CEO John Graham speaks at the Canadian Chamber of Commerce’s annual general meeting and convention, in Ottawa, on Oct. 14, 2022.Sean Kilpatrick/The Canadian Press
Swedish investment firm EQT AB has formed a consortium with Neuberger Berman Private Markets and the Canada Pension Plan Investment Board to take ownership of international schools operator Nord Anglia Education for US$14.5-billion including debt.
The consortium will own a majority stake in the international schools organization, which operates more than 80 schools in 33 countries and educates more than 85,000 students, EQT said on Monday.
The deal extends EQT’s long involvement with Nord Anglia, which started with an initial investment in 2008. CPPIB also owns a stake in the London-headquartered education company, while Neuberger Berman and a number of other global institutional investors are new stakeholders.
The equity portion of the deal amounts to about US$10-billion and more investors could join, said one person with direct knowledge of the matter, who declined to be named as the information is confidential.
EQT, CPPIB and Neuberger Berman all declined to comment on the value of the equity portion.
“We are highly confident in the growth potential of the sector and look forward to working with new investors,” Caitlin Gubbels, senior managing director and global head of private equity at CPPIB, said in the statement on the deal, adding that the deal also delivered “attractive” returns for the fund.
EQT’s current Asia team, formerly independently run Baring Private Equity Asia, floated Nord Anglia in a US$304-million New York IPO in 2014 before taking it private three years later with CPPIB in a deal that valued it at US$4.3-billion.
The schools operator has expanded from a Hong Kong-based operation to a global one over the years, with major assets in Europe and the United States.
EQT is investing in Nord Anglia through its BPEA Private Equity Fund VIII. Its previous funds will exit the portfolio once the transaction is complete.
CPPIB will reinvest a portion of its stake in support of the acquisition.