M&A Deal Summary

Providence Equity Partners, Leeds Equity Partners and Goldman Sachs Merchant Banking Acquire Education Management

On March 6, 2006, private equity firms Providence Equity Partners, Leeds Equity Partners and Goldman Sachs Merchant Banking acquired education company Education Management for 3.4B USD

Acquisition Highlights
  • This is Providence Equity Partners’ 1st, Leeds Equity Partners’ 3rd and Goldman Sachs Merchant Banking’s 1st transaction in the Education sector.
  • This is Providence Equity Partners’ 7th, Leeds Equity Partners’ and Goldman Sachs Merchant Banking’s 16th largest (disclosed) transaction.
  • This is Providence Equity Partners’ 21st, Leeds Equity Partners’ 5th and Goldman Sachs Merchant Banking’s 17th transaction in the United States.
  • This is Providence Equity Partners’ 2nd, Leeds Equity Partners’ 1st and Goldman Sachs Merchant Banking’s 3rd transaction in Pennsylvania.
Investment Fate
  • Education Management went public in 2009.
  • Education Management was sold to a strategic buyer in 2017.

M&A Deal Summary

Date 2006-03-06
Target Education Management
Sector Education
Buyer(s) Providence Equity Partners
Leeds Equity Partners
Goldman Sachs Merchant Banking
Deal Type Going Private
Deal Value 3.4B USD

Target

Education Management

Pittsburgh, Pennsylvania, United States
website
Education Management Corp. is a provider of private post-secondary education. EDMC has provided career-oriented education for over 40 years has generated consistent revenue and profit growth for many years and is among the largest providers of private post-secondary education in North America based on student enrollment and revenue.

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Buyer(S) 3

Buyer

Providence Equity Partners

Providence, Rhode Island, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1989
PE ASSETS 36.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Providence Equity Partners is a specialist private equity firm that targets investments in media, entertainment, communications, and information companies. Specifically, Providence seeks investments in wireless and wireline telephony, cable television content and distribution, music, film, publishing, radio and television broadcasting, and other media and communications sectors. Providence Equity looks to commit $150 million to $800 million of equity capital in transactions ranging from growth financings and recapitalizations, to buyouts and take-privates. Providence Equity Partners was formed in 1989 and has offices in Providence, Rhode Island; New York, New York; Los Angeles, California; London, United Kingdom; Hong Kong, China; and New Delhi, India.


DEAL STATS #
Overall 34 of 133
Sector (Education) 1 of 7
Type (Going Private) 3 of 12
State (Pennsylvania) 2 of 5
Country (United States) 21 of 84
Year (2006) 3 of 7
Size (of disclosed) 7 of 34
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-01-01 ZVRS

Clearwater, Florida, United States

ZVRS is a nationally recognized provider of video relay services that enable Deaf and Hard-of- Hearing individuals to communicate with hearing people worldwide. The company provides videophone hardware, software and accessories designed to enable a real-time video connection with certified ASL interpreters who relay conversations between parties. ZVRS is committed to serving the Deaf community; a majority of its interpreters are RID-certified and more than half of non-interpreter employees are Deaf or Hard-of-Hearing.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-06-08 Pluris

Framingham, Massachusetts, United States

Pluris is a leading marketing solutions provider.

Buy -
Buyer

Leeds Equity Partners

New York, New York, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1993
PE ASSETS 3.3B USD
Size Large
Type Sector Focused
DESCRIPTION

Leeds Equity Partners is a specialist private equity firm that targets investments in middle-market companies operating in knowledge industries. Specific areas of interest include education (K-12, postsecondary, at-risk/special education, instruction materials, testing), training (corporate training, professional certification/continuing education, language training), and information/business services (b2b publishing, information databases/research, tradeshows/conferences, business process outsourcing, consulting, staffing, marketing). Leeds prefers investing in established companies that are leaders in their respective markets. Leeds Equity Partners was formed in 1993 and is based in New York, New York.


DEAL STATS #
Overall 5 of 40
Sector (Education) 3 of 16
Type (Going Private) 1 of 2
State (Pennsylvania) 1 of 2
Country (United States) 5 of 37
Year (2006) 1 of 1
Size (of disclosed) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-06-02 Miller Heiman

Chicago, Illinois, United States

Miller Heiman is a sales performance training and consulting firm, serving clients in over 35 countries and working with some of the most respected companies in the world. Miller Heiman was formed in 1960 and is based in Chicago, Illinois.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-03-01 EduK Group

Santurce, Puerto Rico

EduK Group Inc. operates educational institutions. EduK Group is a provider of postsecondary education in Puerto Rico and is building a presence in key Hispanic markets within the U.S.

Buy -
Buyer

Goldman Sachs Merchant Banking

New York, New York, United States

website


Category Private Equity Firm
Founded 1986
PE ASSETS 155.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Goldman Sachs Merchant Banking Division is the investment arm of Goldman Sachs. The primary corporate investment group within the Merchant Banking Division is Goldman Sachs' direct investment arm. GS's direct investment arm consists of GS Capital Partners, GS Mezzanine Partners, and GS Growth Partners. GS Capital Partners is the direct corporate equity investment group which seeks LBO, recapitalization, and growth investments to help fund acquisitions, expansions, recapitalizations, restructurings, buyouts, and take privates. GS Capital Partners looks to invest between $50 and $800 million in opportunities in North/South America, Europe, Asia. GS Mezzanine Partners is the junior capital arm of Goldman Sachs. GS Mezzanine looks to invest between $200 million and and $800 million in transactions valued up to $10 billion. Investment proceeds are used to fund leveraged buyouts, expansion financings, recapitalizations, acquisitions, and restructurings. GS Growth looks to invest in growth equity transactions. The unit seeks to commit $20 to $200 million per investment. Other units within GS's merchant banking division include Real Estate, Infrastructure, and Urban Investments. Goldman Sachs Merchant Banking Division is based in New York City.


DEAL STATS #
Overall 27 of 178
Sector (Education) 1 of 2
Type (Going Private) 4 of 15
State (Pennsylvania) 3 of 6
Country (United States) 17 of 122
Year (2006) 1 of 8
Size (of disclosed) 16 of 52
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-14 Validus Re

Pembroke, Bermuda

Validus Re is a provider of reinsurance and insurance, conducting its operations worldwide through two wholly-owned subsidiaries, Validus Reinsurance, Ltd. and Talbot Holdings Ltd. The company is a Bermuda-based reinsurer focused on short-tail lines of reinsurance. Talbot is the Bermuda parent of the specialty insurance group primarily operating within the Lloyd's insurance market through Syndicate 1183. Validus Re was founded in 2005 and is based in Pembroke.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-03-23 Capmark Financial Group

Horsham, Pennsylvania, United States

Capmark Financial Group, Inc. is a commercial real estate finance company with investments and funds management and asset management businesses.

Buy -