Canadian Pension Group to Buy Nord Anglia at $4.3 Billion Value

Canada Pension Plan Investment Board and Baring Private Equity Asia Ltd. agreed to acquire the rest of Nord Anglia Education Inc. in a deal that values the Hong Kong-based international school operator at $4.3 billion, including debt.

The buyers are offering $32.50 a share in cash for each Nord Anglia share, an 18 percent premium over Monday’s close in New York, the companies said in a statement. The equity portion gives the company a value of about $3.4 billion. Funds affiliated with Baring Private equity already control 67 percent of the company’s shares, the companies said.

“This is CPPIB’s first direct equity investment in private education and through Nord Anglia we are able to gain both asset and geographical diversification,” said Deborah Orida, head of private equity in Asia for CPPIB, Canada’s largest pension fund manager.

Nord Anglia’s board has recommended shareholders approve the transaction, which allows the school operator to talk to other potential suitors during the next 30 days.

Nord Anglia, founded in 1972, operates 43 international schools in 15 countries across Asia, Europe, the Middle East, North America. They teach 37,000 students worldwide, the companies said.

Baring Private Equity invested in Nord Anglia in 2008 in a transaction valued at $360 million, according to Bloomberg data. The company has since acquired several schools.

— With assistance by Tom Lavell

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