A number of firms will reportedly bid next week for one of the UK’s largest law schools, The College of Law, Reuters reported Friday. Buyers linked to the deal include education company Pearson, KKR-owned Laureate International Universities and buyout house Providence Equity Partners, as well as Palamon Capital Partners and a joint bid from Exponent Private Equity and Sovereign Capital, Reuters wrote.
(Reuters) – Bids are due next week on the sale of one of the UK’s largest law schools, The College of Law, bankers said on Friday.
The college, a charity incorporated by Royal Charter in 1975, was put up for sale towards the end of last year and has attracted interest from a number of trade buyers and private equity firms.
Advisory firm Hawkpoint is advising on the sale process.
Hawkpoint declined to comment.
The college could fetch around 140 to 150 million pounds ($215-$230 million), bankers said. If a private equity sponsor is successful, the acquisition will be financed through a leveraged buyout that is likely to be backed by around 60 million pounds of debt provided by a club of banks, bankers said.
The company has earnings before interest, taxes, depreciation and amortisation (EBITDA) of around 13 to 14 million pounds and total leverage as part of the acquisition could be 4.5 to 5 times EBITDA, the bankers added.
Buyers linked to the deal include education company Pearson, KKR-owned Laureate International Universities and buyout house Providence Equity Partners, bankers said, as well as Palamon Capital Partners and a joint bid from Exponent Private Equity and Sovereign Capital.
In 2009 The College of Law’s rival BPP was acquired for 300 million pounds by Apollo Global, a joint venture formed to invest in the education services sector, which is 80.1 per cent owned by Apollo Group, the parent company of the University of Phoenix, and 19.9 per cent owned by private equity firm The Carlyle Group.Get your FREE trial or subscribe now to Buyouts to find new deal opportunities, super-charge your fundraising efforts and track top managers.