KinderCare Education Acquires Rainbow Child Care Center, Expanding to More than 1,500 Learning Centers, Serving 185,000 Children across the United States
PORTLAND, Ore.--(BUSINESS WIRE)--Aug 27, 2018--Further cementing its leadership role as the largest childcare provider in the United States, KinderCare Education (KCE) announced today the successful acquisition of Rainbow Child Care Center and its 150 centers in 16 states. Based in Troy, Michigan, Rainbow is the eighth largest child care provider in the nation, and the acquisition expands KinderCare’s national presence to provide child care to more than 185,000 children in 40 states and Washington, D.C.
The company did not disclose the terms of the transaction, which closed on August 24, but can confirm that this is the largest single acquisition for KinderCare since the company merged with Knowledge Learning Corporation in 2005.
Known for its red-roofed community-based learning centers that began almost 50 years ago, KinderCare currently operates more than 1,300 fully accredited centers and has delivered 24 quarters of top-line and bottom-line consecutive earnings growth. After opening its first center more than 30 years ago, Rainbow has grown to serve families in more than 150 centers in 16 states, including Indiana, Michigan, North Carolina, Florida, Virginia, New Jersey and South Carolina.
“Through this acquisition, KinderCare will grow our footprint overnight with a partner who shares our values and commitment to children and families,” said Tom Wyatt, CEO, KinderCare Education. “Bringing our two companies together, we share the goal of raising the quality of childcare in this country. What’s more important than helping to build a lifelong love of learning and confidence in more children?”
KinderCare, based in Portland, operates more accredited centers than any other provider, and has earned the distinction of being one of fewer than 40 Gallup Great Workplace award winners for two years in a row. Recent independent assessments from TerraNova ® and BRIGANCE ® confirm that KCE students are better prepared for school.
Rainbow, meanwhile, has consistently delivered industry-leading growth through their robust new center opening engine. Both KinderCare Education and Rainbow offer before- and after-school programs, and partner with private sector companies to provide child care for their workers, demonstrating further alignment in their offerings for families, and fueling opportunities for growth.
Rainbow co-founder Pat Fenton said: “We’re thrilled to join the KinderCare family to build upon our 30-year record of success. Our combined forces will enable us to serve more families with the high-quality child care that is our tradition.” Effective immediately, Fenton will report to Wyatt, and join the KinderCare Education leadership team.
KinderCare Education and Rainbow are both majority-owned by private equity firms - Partners Group, on behalf of its clients (KCE), and Quad-C Management (Rainbow).
“We’re excited about this acquisition and proud that it means KinderCare will be able to provide even more children and hardworking families access to the quality early education that KinderCare is known for,” said Joel Schwartz, Head Private Equity Americas at Partners Group and a member of KinderCare’s Board.
Tim Billings, Partner at Quad-C Management Inc. said, “We are honored to have been partners with Pat Fenton and the Rainbow team. Rainbow is known for developing and operating world class schools; the combination of KinderCare and Rainbow will create tremendous opportunities for students, families and employees.”
About KinderCare Education ®
KinderCare Education is an experience-based provider of early education and child care with more than 32,000 teachers and staff serving 170,000 children and their families every day, where they need us:In neighborhoods with our KinderCare® Learning Centers that offer early childhood education and child care for children six weeks to 12 years old. At work through KinderCare Education at Work™, family-focused benefits for employers including on-site and near-site early learning centers and back-up care for last-minute child care. In local schools with our Champions® before and after-school programs.
KinderCare Education operates more than 1,380 early learning centers, more than 500 Champions sites, and is supported by a corporate team of nearly 500 headquarters employees based in Portland, Oregon. In 2018, KinderCare Education earned their second Gallup Great Workplace Award – one of only 39 companies worldwide to win the award. To learn more, visit kc-education.com.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180827005429/en/
CONTACT: KinderCare Education
Alex Pentland, 503-872-1300, option 3
KEYWORD: UNITED STATES NORTH AMERICA MICHIGAN OREGON
INDUSTRY KEYWORD: EDUCATION PRIMARY/SECONDARY BABY/MATERNITY CHILDREN PRESCHOOL CONSUMER
SOURCE: KinderCare Education
Copyright Business Wire 2018.
PUB: 08/27/2018 03:10 PM/DISC: 08/27/2018 03:10 PM