Southern Capital, HPEF agree exit from Singapore school

The two private equity firms acquired CIS for S$460 million in 2014, according to AVCJ Research. Southern Capital made the investment from its third fund, which closed at $408 million in 2013, while HPEF committed capital from its $1.47 billion sixth vehicle, the last one it raised before spinning out from HSBC. The 10-year term ended in 2018 but there are provisions for two extensions – each of two years – pending LP approval. A revised incentive scheme was agreed with LPs in 2017.

CIS is described in a filing as one of the largest for-profit premium international schools in Singapore. Established in 1990, it delivers the international baccalaureate curriculum to students from nursery age through grade 12. Approximately 3,500 students currently attend classes at two campuses. Revenue came to S$118 million in 2019, up from S$107.1 million the previous year, while net profit rose from S$16 million to S$20.6 million.

CIS switched to remote learning after schools in Singapore were closed due to the coronavirus pandemic. Phased resumption of classes across the city-state began this month. Global international baccalaureate examinations scheduled for May were canceled, with students awarded a diploma or certificate that reflects the standard of their work. The transaction includes adjustment mechanisms based on the financial performance of CIS over the next two years.

China Maple Leaf’s first school opened in Dalian in 1995. As of March, it operated 16 high schools, 26 middle schools, 27 elementary schools, 28 preschools, and three foreign national schools in China, Canada, and Australia. Nearly all these institutions are based in China, with middle-class Chinese families accounting for 90% of the student base. The company employs 3,583 teachers and serves 43,572 students.

Revenue for the 12 months ended August 2019 came to RMB1.57 billion, while net profit was RMB654.2 million. For the six months ended February 2020, these figures were RMB791.8 million and RMB263.9 million, respectively. China Maple Leaf’s stock rose 9% in response to the acquisition announcement on June 22.

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• Topics
• Southeast Asia
• Trade sale
• Consumer
• Singapore
• Education
• Southern Capital
• HPEF Capital Partners