Eurazeo to sell early education business Grandir to InfraVia

The closing of the deal is expected in the coming months, subject to the usual conditions. Eurazeo is set to earn a 2x return on its initial investment, the firm said in a statement.

French investment firms Wendel Group and Ardian were also expected to submit binding offers for Eurazeo's stake in the business, which operates Les Petit Chaperons Rouges and other premium nursery chains, Unquote sister publication Mergermarket reported in June. Partners Group and Naxicap were accepted to the second round of the auction in May, the report said, though it is unclear whether they were still in the running later on.

Grandir generates EBITDA in the region of €50-60m, three sources told Mergermarket in June, with expected revenues of €425m for this year. A deal could value the business at a mid-teen EV/EBITDA multiple or in line with the sale of French rival Babilou last year, one of the sources added.

The sale of Grandir continues a busy streak of exits for Eurazeo in recent months, with the GP selling its stakes in Iberchem, Trader Interactive and Planet in this first half of the year. Portfolio company In'Tech was also preparing to review first-round acquisition bids at the end of June, while the GP has also launched the sale of Peters Surgical, as reported.

Eurazeo plans to accelerate its asset divestment programme in 2021 and 2022 given the maturity of its PE portfolio, as reported by Unquote.

Eurazeo still has several assets in its portfolio that were acquired more than five years ago, according to Unquote Data. These include Redspher (originally Flash Europe), a Luxembourg-based express transport service bought in 2015; Orolia, a GPS technology developer taken private in 2016; and Groupe Rosa, an omnichannel group of home and fashion brands, including Linvosges, Françoise Saget and Envie de Fraise, acquired in 2016.

Previous funding
Eurazeo invested €134m in exchange for a minority stake in nursery operator Les Petits Chaperons Rouges (now Grandir) in 2016. The transaction was structured as a buyout, allowing previous backer Five Arrows to exit the business. The Rothschild investment arm had supported the owner buyout of the company in 2010, according to Unquote Data. Eurazeo secured a 41% stake while co-investor BPI France held onto 8% of the shares.

Over the holding period, the company increased the number of nurseries and schools managed from around 250 to more than 650 and its revenues from €140m to nearly €400m, Eurazeo said in a statement.

The company internationalised as well, with two-thirds of the children cared for now being outside France (in Germany, the UK, Canada and the US).

Company
Grandir is a network of nurseries and schools, with brands including Les Petits Chaperons Rouges in France, Infanterix in Germany, Kiddi Caru in the UK and Kids & Company in North America. It operates 650 centres with a dedicated team of 10,000 teachers, serving 32,000 families.

People
Eurazeo – Marc Frappier (managing partner); Vivianne Akriche (managing director).

Advisers
Vendors – Lazard (M&A).

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• Topics
• Exits
• France
• Consumer
• Buyouts
• Eurazeo