Epiris sells Treetops Nurseries for Electra

Epiris has announced that it has agreed the sale of Treetops Nurseries, the UK’s fourth largest nursery education operator, to Busy Bees. The transaction is anticipated to close in April.

Electra Private Equity is expected to receive proceeds from the sale of GBP93 million, an uplift of GBP44 million or 91% and equivalent to an increase in its NAV of 107 pence per share on the valuation of the investment at 30 September 2016. This equates to a return of 6.5x cost and an IRR of 59%. This is the seventh exit delivering a money multiple of more than 3x that Epiris has achieved in the last twelve months.

Headquartered in Derby, Treetops provides childcare to in excess of 6,000 children and employs more than 1,300 people. The company operates 61 schools, predominantly in the North of England, the Midlands and the South East.

Treetops was spun out of PINE Unit Trust in 2012. The separation allowed Epiris to initiate a transformation strategy to accelerate growth through strategic focus, operational improvement and M&A. Epiris recruited Stephen Booty as Chairman and Charles Eggleston as CEO to deliver this strategy.

Chris Hanna, Partner at Epiris, said: “In 2012 we designed a strategy to transform Treetops. Five years later we have delivered. Treetops’ position as one of the largest nursery school operators in the UK is the result of a programme of growth investment, operational improvement and M&A. This has more than quadrupled earnings and created a business which, as today’s announcement demonstrates, is highly attractive to a strategic acquirer.

We couldn’t have done this without Charles Eggleston, CEO of Treetops, and his team, and we wish them well under new ownership.”

Charles Eggleston, CEO of Treetops, said: “Epiris has been a fantastic investor for Treetops. Chris and his team set out a clear vision for the business and provided invaluable support as we have worked to fulfil it.”

ELTA : Epiris sells Treetops Nurseries for Electra