KKR buys majority stake in India's EuroKids from Gaja

The size of the transaction was not disclosed. KKR is investing through its third pan-Asian fund, which closed in 2017 at $9.3 billion. According to AVCJ Research’s records, this is KKR’s first transaction in the Indian education sector, though the firm is active in the sector globally.

Founded in 2001, EuroKids focuses on the pre-school and kindergarten through middle school segments, serving more than 120,000 students across 1,115 pre-schools and 35 K-12 establishments in five countries. Its brands include EuroKids, EuroKids DayCare, Kangaroo Kids, EuroSchool and Billabong International. The Kangaroo Kids and Billabong High franchise came through a bolt-on acquisition in 2017.

Gaja bought EuroKids during a selling spree by debt-laden parent company Educomp Solutions. The GP led a consortium - including Partners Group and one other investor - that paid approximately INR2 billion ($27.8 million) for a majority interest in 2013. Gaja accounted for 70% of the equity. The consortium assumed control through a secondary transaction, which took out existing investors, and a commitment of primary capital, which helped secure the future of the business.

The existing management team at EuroKids will remain in place and Prajodh Rajan, a co-founder and the group CEO, will continue to hold a minority interest in the company. KKR will help identify organic and inorganic growth opportunities and ways to enhance offerings and practices. Areas of focus include digital learning and customized teaching programs.

“The desire for high-quality educational services is at an all-time high in India. The country has over 125 million children in the two-to-six age range, as well as the largest K-12 population in the world at 320 million people. We are excited to support families looking to provide their children with a world-class, new-age learning environment,” Ajay Candade, a director at KKR, said in a statement.

Gaja, which is currently investing its third fund, targets areas that leverage domestic consumption growth, with particular focus on education, financial services, and healthcare. The portfolio includes Educational Initiatives, a developer of educational technology and assessment tools, fitness start-up SportzVillage, and test preparation services provider CL Educate. A partial exit from CL Educate came through the company’s IPO in 2017.

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• Topics
• South Asia
• Trade sale
• Consumer
• India
• KKR
• Gaja Capital Partners
• Education