KinderCare Learning Companies Seeks $3.09 Billion Valuation for IPO

(Reuters) – KinderCare Learning Companies, a provider of early childhood education, set a target of up to $3.09 billion valuation on Monday for its long-sought U.S. initial public offering.

The 55-year-old company, backed by Swiss private equity firm Partners Group, is moving towards a listing after previously pursuing it in 2021.

KinderCare aims to raise up to $648 million by offering 24 million shares at a price range of $23 to $27 each.

The company, whose brands include KCLC, Crème School, and Champions, serves children ranging from six weeks to 12 years old.

The IPO would be among the first major moves under CEO Paul Thompson, who took over in June after Tom Wyatt’s 12-year tenure.

In 2015, Partners Group acquired KinderCare and will remain the controlling shareholder with a 71.1% stake post-IPO.

Lake Oswego, Oregon-based KinderCare was initially slated to go public in late 2021, aiming to raise up to $541.3 million at a $2.96 billion valuation. However, the listing was postponed due to “regulatory delays,” and KinderCare abandoned its IPO plans last year.

Competing with Bright Horizons (NYSE:BFAM), Kiddie Academy, and Primrose Schools, KinderCare opened its first facility in 1969 and has since grown to over 2,000 locations in the United States.

In 2022, KinderCare acquired the premium child-care and early learning provider Crème School. The IPO proceeds are primarily intended to reduce debt, according to a regulatory filing.

The offering is being underwritten by more than 10 Wall Street banks, including Goldman Sachs, Morgan Stanley, Barclays, and J.P. Morgan.

KinderCare will list on the New York Stock Exchange under the symbol “KLC.”