BPP Education Receives Bidder Inbounds From H&F, TA, KKR as Owner TDR Mandates Morgan Stanley, Houlihan Lokey for Exit

Reporting: Maryna Irkliyenko, Oscar Laurikka Relevant Document: BPP Topco Accounts 2022 TDR Capital has mandated Morgan Stanley and Houlihan Lokey to sell its U.K.-based education business BPP Education, sources told Reorg. Vendor due diligence of the business, which is expected to be marketed off EBITDA of about £130 million, is underway, the sources said. H&F, KKR and TA Associates have expressed early interest in bidding for the business, sources added. Leveraged buyouts of European education services companies have an average multiple of 13.1x, according to Fundamentals by Reorg. Private equity firms including CVC, Montagu, NPM Capital, Antin, TA Associates and FTV Capital have recently made investments in the sector, according to Fundamentals. BPP is a U.K.-based provider in the professional and vocational higher education market, providing training and qualifications in a diverse range of professional verticals including law, accountancy and tax, business and finance, digital and data analytics, actuarial and nursing both to corporates and directly to consumers. TDR Capital acquired the business in July 2021 via TDR Capital IV, according to its website. BPP generated turnover of £247.6 million and made a loss before tax of £91.3 million in the 18-month period ended Aug. 31, 2022, according to its[...]