Taaleem Acquires 95% Stake in Kids First Group to Expand GCC Presence

There’s never a quiet day in the world of education mergers, is there? This one caught my eye and, well… I mean, it’s a pretty big deal. UAE-based Taaleem Holdings PJSC just announced a major acquisition, snapping up a hefty 95% stake in Kids First Group (KFG), a leading provider of early-learning education across the GCC.

If you've got little ones or nieces and nephews in Dubai, Abu Dhabi or Doha, you'll probably know a few of these nursery brands pretty well: Redwood Montessori Nursery, Odyssey Nursery, Willow Children’s Nursery, Ladybird, and Children’s Oasis. KFG is operating some 34 nurseries in central residential and commercial locations, catering to more than 5,000 kids. Not exactly small potatoes, is it?

What sets KFG apart, I reckon, is the diversity in curriculum it offers, from Montessori to the British EYFS curriculum and a few others in between. They’ve designed it so there's something to cater to most tastes and budgets. And believe it or not… KFG has been generating robust cash flows from day one, making it quite an attractive buy if you ask me.

Following the acquisition, KFG will continue to run independently within Taaleem’s extensive portfolio. What’s reassuring, and probably a good sign for parents and employees alike, is the continuity in KFG's leadership. Founder Kamil Najjar, who will remain a 5% shareholder, will stay on as CEO, alongside his experienced management team. Honestly, continuity in a buy-out scenario tends to be spot on for maintaining service quality and stability.

Worth dropping a quote in here: Taaleem's Chairman, Khalid Al Tayer, says this acquisition "is an important next chapter," allowing the group to create a comprehensive education pathway right from the early years all the way through K-12. He's pretty confident about this one, highlighting KFG’s strong track record, respected brand identity and strategic fit with Taaleem’s existing business.

Philippe Tapié, CEO of People & Baby Group—a former custodian of KFG—seems chuffed to bits about the transition too, expressing confidence in KFG flourishing under Taaleem’s umbrella after many successful years. Meanwhile, Kamil Najjar himself described Taaleem’s entry as an "exciting new chapter” that would boost quality standards and accelerate growth. According to him, it’s all about giving kids the best possible start, preparing youngsters for the complexities of today’s fast-evolving world.

Taaleem expects the acquisition to be wrapped up by Q4 of their 2024/2025 financial year, once they tick all the regulatory boxes. They'll fund it using a carefully balanced mix of equity and debt—standard fare for a deal of this size.

From where I'm sitting—writing regularly about startups and entrepreneurship at Arageek—I understand why Taaleem sees this as a strategically savvy move. It fits nicely with their disciplined, value-driven investment style, making KFG an obvious "plug-and-play" addition. I've seen plenty of startups rise and fall over the years, but KFG’s focused approach on premium learning provision seems like a pretty smart bet.

Deloitte Corporate Finance Advisory Limited and Freshfields Bruckhaus Deringer LLP advised Taaleem financially and legally, respectively. Meanwhile, advising People & Baby Group were Centerview Partners and Linklaters LLP. Clearly, both sides brought out the big guns for this one.

One thing’s definately clear: The early-learning sector continues to heat up, and Taaleem just stepped boldly into the fray. One to watch for sure.

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