Investee companies to be combined in $450m deal

Bain Capital investee, childcare business Only About Children, is to be acquired by US-based Bright Horizons, also a Bain investee, for $450 million.

Under the sale agreement, Only About Children will receive a $300 million payment upfront with the remaining $150 million to be paid 18 months after the deal is closed.

Bain Capital initially invested in Bright Horizons when it was established more than 30 years ago and has backed the company ever since as it has grown to a network of more than 1,000 childcare centres across the US, UK, Netherlands and India.

Bain Capital took a majority stake in Only About Children in 2016 for an undisclosed sum. Founder Brendan McAssey, a former Morgan Stanley investment banker, retained a stake in the business after Bain Capital’s investment.

Since then, the business has grown from 31 centres to more than 70 across NSW, Victoria and Queensland although the majority of the centres are still in the Sydney area.

Only About Children generated revenue of about $196.7 million in the 2021 calendar year.

Chief executive John Burns and his senior executive team are to continue under the new ownership.

“We believe this partnership will allow us to leverage Bright Horizons’ leadership in the early childhood education field and enable us to further capitalise on the growth opportunities we see ahead,” Burns said.

Bright Horizons chief executive Stephen Kramer said the acquisition would be a “great starting point” for the group in the Australian market.

“We have long been interested in Australia as an attractive market for high-quality childcare, with strong demand from working parents, an established funding support system and a long runway for growth and expansion,” he said.

Law firm Allens is advising Bain Capital on the transaction which is expected to close by the end of September, subject to customary conditions.