- KKR has acquired a major stake of 90% stake in Eurokids International.
- KKR is a Global Investment Fund.
Buyout major KKR (Kohlberg Kravis Roberts) has purchased a majority stake in the EuroKids International education business for Rs 1,475 crore. The agreement will value the business that works at nearly Rs 1,600 crore across pre-schools to-12. In addition to one of the promoters in one of the biggest transactions on the education market, KKR acquires a stake of more than 90% held by the current private equity holders of the firm, Gaja Capital and Partners Group.
EuroKids will continue to be managed by its team of experienced teachers, administrators and management team led by Prajodh Rajan, Co-Founder & Group CEO, who will also remain the company’s shareholders.
KKR will work closely with EuroKids and its brand portfolio to identify possibilities for organic and inorganic growth as well as methods to improve offers and procedures. Focus areas include tech-enabled / digital teaching and tailor-made pedagogy to provide access to holistic, world-class schooling for more learners. After acquiring Kangaroo Kids and Billabong High franchise in 2017, EuroKids has a good record of mergers and acquisitions in the room for educational services.
As the firm purchased Kangaroo Kids and Billabong High franchises in 2017 to grow its business, Gaja Capital and Partners Group had purchased a 50 percent interest in EuroKids. For KKR, this will be a bet on India’s economic growth and it will aim to leverage its space-based worldwide investment experiences, such as the UK’s private school chain Cognita and Kindercare US daycare chain.
“The desire for quality education facilities is at an all-time high in India. The nation has over 125 million kids in the 2-6 age range, as well as the world’s biggest K-12 population of 320 million individuals,” said Ajay Candade, director of KKR. The business has products such as EuroKids, Euro-Kids DayCare, Kangaroo Kids, EuroSchool and Billabong International that serve over 1,20,000 learners.
About EuroKids International
EuroKids International is India’s leading Early Childhood and K-12 education services firm focused on providing the’ Joy of Learning’ by improving its pedagogy and continuously developing a holistic, nurturing and safe learning environment for kids. With its portfolio of products committed to providing a solid basis for future generations, EuroKids International has played an active part in the evolution of the educational landscape over the past 18 years.
The brand portfolio of EuroKids International involves EuroKids, EuroKids DayCare, Kangaroo Kids, EuroSchool & Billabong International, spread over 350 + towns and five nations. The group is also dedicated to generating sustainable entrepreneurial possibilities for women entrepreneurs in particular and has allowed more than 10,000 employees across the nation. EuroKids is constantly REINVENTING EDUCATION in the nation, having bagged several prestigious prizes in the education sector including Best Education Brands, 2018.
EuroKids, competing with competitors such as Shemrock and TreeHouse, had sales in excess of Rs 400 crore in FY19 and is anticipated to reach Rs 500 crore in FY20, increasing at 20-25 percent annually. The company’s profit-after-tax margin is 10-15%.
EuroKids will also explore fresh fields such as after-school training, ancillary sports, content development and adaptive teaching. In addition, KKR intends to pursue inorganic possibilities with the EuroKids leadership team.
Global Investment Firm KKR
KKR (Kohlberg Kravis Roberts) is a major worldwide investment company that manages various alternative asset classes with strategic partners that manage hedge funds, including private equity, power, infrastructure, real estate and credit. KKR seeks to produce appealing returns on investment for its fund managers by pursuing a patient and disciplined investment strategy, employing world-class individuals, and driving KKR portfolio companies to grow and create value. KKR invests its own equity alongside the capital it manages for fund managers and through its capital markets company offers funding alternatives and investment possibilities. The operations of its supported funds may include references to KKR’s investments.