Both Guardian and Affinity sale processes kick off as PE owners work towards exits

Jason Roberts

Mar 13, 2023

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The private equity owners of two of Australia’s largest early childhood education and care providers, Guardian Childcare & Education and Affinity Education Group, have kicked off plans that may lead to their sale, possibly in the second half of 2023.

Partners Group - the Swiss based owner of Guardian - has appointed investment bank Morgan Stanley to sell the group which it acquired from Navis Capital in for $440 million including debt, The Australian has reported.

Guardian is currently the fifth largest long day care provider in Australia, operating a network of around 135 centres across the country of which 94 per cent are rated at or above Meeting the National Quality Standard.

It is understood to be generating between $80m and $100m of annual earnings before interest, tax, depreciation and amortisation with the sale process expected to commence in June or July this year.

In separate news, as reported by The Australian Financial Review, Quadrant Private Equity, the Sydney based owner of Affinity Education Group, Australia’s third largest long day care provider, has begun discussions with investment banks and advisors on a strategic review and the possible sale of the Group in a bid to find a new long term owner.

Quadrant acquired Affinity from Anchorage Capital Partners in mid 2021 in a deal that was understood to value the business at $650 million. Since taking over, Affinity has grown its network of centres across Australia substantially from around 150 at the time of acquisition to just over 200 today.

Commenting at the time CEO Tim Hickey noted “We have come a long way and yet there is so much more to do. I’m excited about partnering with Quadrant to take Affinity to a truly world class organisation.”

More details on developments in both processes are expected by mid year.

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