The Learning Experience Acquired by CA-Based Private Equity Firm
At its Deerfield Beach, FL headquarters, The Learning Experience has 80 employees, with plans to grow to 110 employees by the end of 2018, and up to 150 long term, a company spokesperson tells Globest.com
DEERFIELD BEACH, FL—The Learning Experience, a nationwide early childhood education provider, has been acquired by San Francisco-based private equity investment firm Golden Gate Capital in a deal that its new ownership says will accelerate the firm’s growth plans in the US and abroad.
The Learning Experience, headquartered in Deerfield Beach, FL was founded in 2001 and has grown to more than 300 owned and franchise locations in operation or in development in 22 states. No financial terms of the transaction were announced. The Learning Experience is led by co-founder, chairman, and CEO Richard Weissman. The company currently has plans to open its first international location in the United Kingdom in late 2019.
At its Deerfield Beach, FL headquarters, The Learning Experience has 80 employees, with plans to grow to 110 employees by the end of 2018, and up to 150 long term, a company spokesperson tells Globest.com
Learning Experience offers state-of-the-art facilities and a proprietary curriculum for children from six weeks to six years old to develop core academic, fitness and healthy lifestyle, and life and comfort skills. The Learning Experience says it provides “the foundation necessary for children to succeed in preschool, kindergarten, and beyond.”
The Learning Experience states it has generated double-digit annual growth for the past 15 years.
“Golden Gate Capital is fully committed to our curriculum and vision, with an excellent track record of accelerating the growth of multi-unit consumer companies,” Weissman says. “This is a transformational moment for The Learning Experience and the children and families we support, and we are thrilled to partner with Golden Gate as we work together to build on our momentum and provide a foundation for even more children to learn, play and grow.”
Josh Cohen, managing director at Golden Gate Capital, says, “The Learning Experience has created a proprietary educational platform that enables its franchisees to provide the highest caliber of academic, physical, and social education to children at their most critical stages of development. We are excited to partner with Richard, his leadership team, and the company’s franchisees to accelerate their growth plans domestically and internationally in the growing early childhood education market.”
According to the Learning Experience company website, the firm is currently seeking to develop new locations in: Metro New York, (including the boroughs, Westchester, Rockland, Suffolk and Nassau counties), all of New Jersey, Pennsylvania, North Carolina, Connecticut, Illinois, Georgia (Atlanta Metro), Michigan, Virginia, Massachusetts, New Hampshire, Texas, Arizona, Colorado, Florida, California, Tennessee, Maryland and Ohio.
The company is seeking freestanding outparcels or in urban markets and building sizes between 9,000 to 12,000 square feet with an adjacent playground space of 5,000 square feet or more and lease terms of 15 years plus minimum two, five-year options.
Ropes & Gray LLP and Nob Hill Law Group P.C. served as legal advisors to Golden Gate Capital. Harris Williams & Co. served The Learning Experience as financial advisor and Goodwin Procter LLP and Greenberg Traurig LLP served as legal advisors to the company. Varagon Capital Partners will serve as administrative agent on a senior secured credit facility, the companies report.
Golden Gate Capital has more than $15 billion of capital under management. Representative multi-unit consumer sector investments sponsored by Golden Gate Capital include Express Oil Change & Tire Engineers, Mavis Discount Tire, Bob Evans Restaurants, Red Lobster, Eddie Bauer, California Pizza Kitchen, Pacific Sunwear, Express and Zales.
Last month, Golden Gate Capital announced it had established a new operating company, PSEB Group composed of two Golden Gate portfolio companies: Eddie Bauer, LLC and Pacific Sunwear of California, LLC. In connection with the establishment of PSEB, Golden Gate will invest additional equity in PSEB to support its growth.
PSEB will have a retail footprint of more than 700 stores and is on track for approximately $1.5 billion in combined total sales in 2018, including $400 million in ecommerce sales.