KinderCare Learning Companies Reboots IPO Bid

(Reuters) – KinderCare Learning Companies, a provider of early childhood education, is rebooting its bid for an initial public offering (IPO) in the United States after first filing for a stock market listing three years ago.

The IPO would mark one of the first major moves by KinderCare’s new CEO, Paul Thompson, who took over in June following the 12-year tenure of his predecessor, Tom Wyatt.

Founded 55 years ago and based in Oregon, KinderCare is one of the largest players in a highly decentralized market, operating over 1,500 centers for children aged six weeks to 12 years.

In 2015, KinderCare was acquired by investment firm Partners Group, which will maintain control after the IPO.

Child care services availability significantly impacts employment decisions, with surveys indicating that many parents opt to leave work or reduce hours due to a lack of child care.

However, some skeptics have raised concerns about the sustainability of KinderCare’s business model. In an April blog, the White House Council of Economic Advisers highlighted a persistent gap between the cost of providing high-quality care and what families can afford, particularly affecting low-income families.

Despite challenges, KinderCare’s revenue grew by 6% from last year, reaching $1.34 billion in the first half of 2024, although it reported a profit of $26.8 million, down from $71.7 million last year.

The company initially filed to list its shares in 2021 but had to abandon plans last year.

A consortium of 12 banks, led by Goldman Sachs, Morgan Stanley, Barclays, and J.P. Morgan, is underwriting the upcoming IPO.

KinderCare intends to list its shares on the New York Stock Exchange with the symbol “KLC.”