Providence sells Galileo to CPP-led consortium

The deal is reportedly worth around €2.5bn, equal to approximately 18x Galileo's EBITDA.

CPP invested through its wholly owned subsidiary CPP Investment Board Europe.

The consortium also comprises private equity specialist Montagu, alongside existing shareholders Téthys Invest (the investment holding of the Bettencourt-Meyers family) and French investment bank BPI France.

On completion of the transaction, CPP Investments and Téthys will each hold approximately 40% in the company.

Providence hired Goldman Sachs and Rothschild to find a new owner for the education group in early February 2020, according to several press reports. The auction reportedly received interest from private equity firms KKR, EQT, CVC Capital Partners and BC Partners, as well as from several European family offices, including Wendel Group and Groupe Bruxelles Lambert, and international institutional investors including Singapore's sovereign wealth fund GIC.

The new owners intend to work with Galileo's management team with the aim of consolidating its business position and further boosting its expansion into new markets, while working to enhance and enlarge the array of subjects and courses offered to higher education students globally.

Providence acquired a majority stake in Galileo in 2011. Under Providence's ownership, Galileo consolidated its presence across Europe and expanded in Asia, Africa and the Americas.

The company also grew via an intensive buy-and build strategy and completed several add-ons, including the purchase of French higher education business Studialis in a €250m deal inked in 2015, and the acquisition of the Italian and Cypriot divisions of Laureate Education for €225m in 2017.

Previous funding
CDC International Capital and Mubadala Development bought a minority stake in Providence-backed Galileo in May 2016. Subsequently, Téthys acquired a stake of around 20% in the business, followed by BPI France, which invested in the company in June 2018. 

Company
Established in 2011, Galileo provides courses and qualifications in management, arts, marketing and technology to around 110,000 students. It manages 42 schools and universities in 13 countries around the world.

Its network includes Paris School of Business, Cours Florent, Penninghen, Strate and Atelier de Sèvres in France; Macromedia University in Germany; Istituto Marangoni in Italy; and Universidad IEU in Mexico. The group generates EBITDA of around €135m, according to press reports.

People
CPP Investments – Alain Carrier (senior managing director, head of international); Ryan Selwood (managing director, head of direct private equity).
Providence Equity Partners – Karim Tabet (managing director).
Galileo Global Education – Marc-François Mignot Mahon (CEO).

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• Topics
• Buyouts
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• Providence Equity Partners
• BPI France
• Montagu Private Equity
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• Secondary buyout