Wendel (MF) M&A Announcement summary

Deal rationale and strategic fit

• The investment aligns with a long-term strategy to own high-quality, resilient assets in non-cyclical sectors like education, supporting portfolio diversification and leveraging expertise in the sector.

• The K–12 education sector is attractive due to stable, predictable revenues, low sensitivity to economic cycles, and non-discretionary demand.

• Globeducate operates 65 premium bilingual and international schools across 11 countries, serving over 40,000 students, mainly in Europe.

• The group has demonstrated strong organic and M&A-driven growth, with a focus on academic quality, diversified curricula, and double-digit annual revenue growth since 2017.

• The investment supports the mission to improve children's skills and global citizenship, aligning with long-term values and vision.

Financial terms and conditions

• Agreement reached to acquire a 50% co-controlling stake in Globeducate alongside Providence, with an enterprise value close to €2 billion.

• Wendel will invest approximately €625 million for the stake, with funds going to Providence as a secondary transaction.

• Globeducate is projected to generate €440 million in sales and €120 million in EBITDA for FY25e, including ongoing acquisitions.

• The business will be funded with leverage slightly below 6x LTM EBITDA.

• Closing is expected in the second half of 2024, pending customary regulatory approvals.

Synergies and expected cost savings

• Value creation is expected from organic growth, M&A, and scale effects, with margin improvements as new facilities ramp up and student numbers increase.

• Operational leverage and disciplined M&A are expected to drive further growth and efficiency.

• Both partners anticipate leveraging their combined expertise to expand Globeducate's reach and operational excellence.