Levine Leichtman to sell GL Education to PE-owned Renaissance

Completion of the transaction is expected by the end of the first quarter of 2023, according to a statement, which did not include financial terms.

Renaissance, a US company specialising in assessment, reading, and math solutions for pre-K–12 schools and districts, was acquired by Francisco Partners in 2018. Blackstone made a “significant” investment in the business in 2021. TPG is also an investor in the group.

The agreed sale follows a year-long protracted auction process when LLCP formally began its attempt to exit GL Education, as first reported by sister publication Mergermarket. The vendor had been targeting an enterprise value of GBP 500m-plus, equal to 14x-16x its marketed EBITDA of GBP 30m–GBP 35m. However, the auction was hampered by concerns around the sustainability of GL Education’s EBITDA growth, prompting many suitors to drop from a process, which in March last year, became a two-horse race between Ardian and Bridgepoint, as reported by Mergermarket at the time. In the end, though, a private equity-led deal never materialised then.

LLCP acquired GL Education in 2016 from Investcorp for more than GBP 200m. It invested from Levine Leichtman Capital Partners V, which raised USD 1.65bn against a target of USD 1.5bn.

The GP is investing in Levine Leichtman Capital Partners VI, which raised USD 2.5bn in 2019 with a mandate to invest both in the US and Europe. It is also currently investing in its European dedicated fund Levine Leichtman Capital Partners Europe II, which raised EUR 463m in 2020.

LLCP acquired GL Education in 2016 from Investcorp for more than GBP 200m.

Company
Founded in 1981, GL Education is a provider of assessments globally. Its tests are used by more than three million pupils every year in British, bilingual and international schools, as well as by education ministries, in more than 100 countries.

People
LLCP – Andrew Schwartz (partner).
GL Education – Greg Watson (CEO).

Advisors
LLCP – Baird (M&A), Willkie Farr & Gallagher (legal).

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