NORD ANGLIA HOT TO TROT

Compare the price paid by Asquiths buyers with that of 'poor old Kevs' buyer
(who got a very good baragin?,not Asquiths buyer I feel)

West Private Equity Exits the Schools Division of Asquith Court
Thursday, 2 December 2004
West Private Equity announces the sale of the Schools Division of Asquith Court to Cognita, a schools group backed by Englefield Capital, for £60 million.

The Asquith Court Schools Division is the leading provider of independent schooling in the UK and comprises 18 independent day schools. With the management team of Cognita and financial backing from Englefield the newly formed business will continue in the consolidation of the education sector.

West Private Equity acquired Asquith Court in 2001 and has completed four add-on acquisitions to the company creating the largest independent schools and nurseries operator in the UK serving 11,000 children. Following the sale, Asquith Court will continue to own and operate one of the largest group of nursery schools in the UK serving 8,000 children from 104 locations.

Jeremy Hand, Managing Director of West Private Equity said: “We have had, and continue to enjoy, a strong working relationship with Phil Rhodes and the management team at Asquith Court. This sale allows the schools business to play a significant role in the anticipated consolidation of the education sector. We will continue to partner with the management of the Asquith Nurseries business and are currently close to acquiring further companies to enhance the value ”.

Philip Buscombe CEO of West Private Equity said: “We are delighted that our first two exits have provided a proof statement for our strategy to build value in portfolio companies through a combination of organic growth and add-on acquisitions, allowing us to return capital to our partners”.

NORD ANGLIA EDUCATION PLC
UK SCHOOLS SOLD FOR ?11.9M
Sale Is Final Step In Restructuring Programme and Provides Focus on Nurseries, International Schools and Outsourcing
Nord Anglia Education PLC ('Nord Anglia' or 'the Company'), the nursery, education and training company (LSE: NAE), today announces the sale of its UK schools portfolio ('UK Schools') to Gems Education Limited, (currently called Hansard 2722 Ltd) ('the Buyer') a wholly owned subsidiary of Global Education Management Systems (GEMS) Ltd for a cash consideration of £11.9 million. The portfolio comprises ten schools, seven of which are located in the North West of England.
Strategic Reorganisation Now Complete
As indicated at the time of the Company's interim results in April, the Board confirmed its intention to increase its presence in the nursery industry through two key acquisitions, partially funded by a successful £23 million fundraising and additionally through the proceeds of the sale of the UK Schools portfolio.
The decision to dispose of the UK Schools as part of the Group's restructuring reflects the fact that, although profitable and cash-generative, the UK Schools earn a lower return on capital than that achieved across the Nord Anglia group as a whole.
The successful sale of the UK Schools completes this planned reorganisation. Nord Anglia now has a strong and predictable nursery business at the centre of the Group providing a stable base from which to further develop the high return Outsourcing and International Schools Divisions.
Refocusing of the Group
A major part of the refocusing of the business was Nord Anglia's recent completion of two key nursery acquisitions: Leapfrog Day Nurseries plc and 28 nurseries operated by Jigsaw Day Nurseries Ltd. These acquisitions have made Nord Anglia the UK market leader, both by number of nurseries (101) and by number of places offered (10,262) and together represents a major step in the implementation of the Board's strategy of strengthening its position in the UK nursery sector.
Commenting on the announcement, Kevin McNeany, Chairman of Nord Anglia, said: 'The sale of the UK Schools is the final step in our restructuring programme and focuses Nord Anglia, going forward, on maximising growth within its three key businesses: Nurseries, where we are now the UK market leader, International Schools and Outsourcing, where we have a clear development strategy for high returns. Nord Anglia is now a much stronger and more stable Group and is in the best possible shape to create greater shareholder value for the future.'
Details: UK Schools Sale
To the year ended 31 August 2003, the UK Schools generated operating profits of £811,000 (before central costs) on a turnover of £9.35 million. Average pupil numbers were 1,850 (full time equivalent). Gross asset value attributable to the UK Schools was £11.7 million. Net asset value, including the then outstanding inter-company balances, which have been settled by Nord Anglia prior to completion, was £8.47 million.
The cash consideration of £10,177,926 million for the sale of Nord Schools Ltd has already been paid. The balance of £1,740,074 million is in respect of the business and assets of Kingswood College. A deposit of £174,007 has been paid on exchange and the balance of £1,566,006.06 is expected to be paid on 22 July 2004 following the completion of the statutory TUPE consultation period for Kingswood employees.
The effective date of the transaction ('the Effective Date') is 30 April 2004. The Buyer has inherited cash balances equivalent to customer deposits and pre-payments of fees received from customers and has also inherited the current debtors as of the Effective Date. The Company is responsible for all outgoings in respect of periods up to and including the Effective Date. Any increase or decrease in the value of the sale assets subsequent to the Effective Date is for the account of the purchaser.
Under the terms of the Kingswood sale agreement, the Buyer has agreed, in the event that it sells on the Scarisbrick Hall property currently occupied by Kingswood College within four years from completion of the Kingswood sale, it will share with Nord Anglia any profit (as defined in the Kingswood sale agreement) on the following basis:
• on a sale within the first two years, 50 per cent of such profit; and
• on a sale within the subsequent two years, 25 per cent of such profit.
Additional asset disposals
In addition to the disposal of the UK Schools Nord Anglia has completed the disposal of further property assets, which were of no operational value to the Company. The former head office building in Cheadle was sold for £1.0 million against a NBV of £1.1 million on 28 May 2004. The property at Caledonian Road, Islington has been effectively sold to Unite plc for a total consideration of £4,120,000 against a NBV of £2,850,000.