Bridgepoint, the private equity owner of English-language training firm Cambridge Education, has appointed Baird and Moelis as joint advisors to explore a carve-out of CATS Education, its university prep college.
CATS College, based in Cambridge, turns over around £100 million annually and logs EBITDA of around £13 million, according to one market source.
A teaser for the business under the name "Project Alumni" has been circulated in the market, this publication understands, though a copy of it has not been seen.
It is understood that international schools giant Nord Anglia is looking at the business.
One market source pointed to “underperformance” as a motive behind the potential partial sale, while another described the business as “one of the good bits of Cambridge Education”.
Another source familiar with the process said that “chatter has arisen because of unsolicited approaches for parts of the business, hence the involvement of advisors to deal with these speculative approaches”.
Bridgepoint declined to comment.
Date published: 15 March 2019