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Partners Group-backed KinderCare seeks up to $3.1 billion valuation in long-sought US IPO

Published 09/30/2024, 07:13 AM
Updated 09/30/2024, 10:03 AM
© Reuters. Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., September 19, 2024.  REUTERS/Brendan McDermid/File Photo

(Reuters) -KinderCare Learning Companies, a provider of early childhood education, set a target of up to $3.09 billion valuation on Monday for its long-sought U.S. initial public offering.

The 55-year-old company, backed by Swiss private equity firm Partners Group, is moving towards a listing after previously pursuing it in 2021.

KinderCare is aiming to raise up to $648 million by offering 24 million shares at a price range of $23 and $27 each.

The company, whose brands include KCLC, Crème School, and Champions, serves children ranging from six weeks to 12 years of age.

The IPO would be among the first major moves under CEO Paul Thompson, who took over the mantle in June after Tom Wyatt's 12-year stint.

In 2015, Partners Group acquired KinderCare and will remain the controlling shareholder with a 71.1% stake after the IPO.

Lake Oswego, Oregon-based KinderCare was initially slated to go public in late 2021, when it sought to raise up to $541.3 million at a $2.96 billion valuation.

But the listing was postponed with KinderCare citing "regulatory delays." Last year, the company abandoned its IPO plans.

KinderCare, whose rivals include Bright Horizons (NYSE:BFAM), Kiddie Academy, and Primrose Schools, opened the first facility in 1969. Since then, it has grown to over 2,000 locations in the United States.

In 2022, KinderCare acquired premium child-care and early learning provider Crème School.

The IPO proceeds will be mainly used to cut debt, the company said in a regulatory filing.

© Reuters. Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., September 19, 2024.  REUTERS/Brendan McDermid/File Photo

The offering is being underwritten by more than 10 Wall Street banks, led by Goldman Sachs, Morgan Stanley, Barclays, and J.P. Morgan.

KinderCare will list on the New York Stock Exchange under the symbol "KLC."

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