Cambridge Education May Get Bids from Providence, MontaguKiel Porter
Providence Equity Partners Inc. and Montagu Private Equity LLP are considering bids for Cambridge Education Group Ltd., a provider of courses for students looking to attend universities in the U.S. and Europe, four people with knowledge of the talks said.
Cambridge’s owner, Palamon Capital Partners Ltd., is seeking as much 200 million pounds ($306 million) for the company, said the people who asked not to be identified because the talks are private. First-round bids are due by November, they said.
Palamon bought a stake in Cambridge Education in a deal that valued the company at about 15 million euros ($20 million) in June 2007, according to data compiled by Bloomberg. The company’s operating profit before exceptional items, depreciation and amortization climbed to 5.3 million pounds in 2012, up from 3.9 million pounds the previous year, according to filings at the U.K.’s Companies House. Revenue climbed 29 percent to 56.1 million pounds.
The sale is being run by DC Advisory Partners Ltd., the people said. Cambridge may also draw interest from corporate bidders such as Study Group Ltd. of the U.K. the people said.
Officials at Montagu, Providence and DC Advisory declined to comment. Spokeswomen for Palamon and Study Group declined to comment.