KinderCare sets $576 Million target for US IPO, Backed by Partners Group

KinderCare Learning, a major provider of early childhood education in the U.S., has priced its U.S. initial public offering (IPO) to raise $576 million, according to an announcement on Tuesday. The company, backed by private equity firm Partners Group, set the IPO price at $24 per share, within its targeted range of $23 to $27. This pricing values the company at approximately $2.74 billion on a non-diluted basis.

Based in Oregon, KinderCare operates over 1,500 centers across the U.S., accommodating more than 200,000 children, as detailed in its IPO filing. In addition to these centers, the company also manages 900 before-and-after school programs in 40 states and the District of Columbia.

For the six months ending on June 29, KinderCare reported revenue of $1.34 billion, up from $1.27 billion in the same period last year. However, its net profit dropped to $26.8 million from $71.7 million over the same timeframe, as per the company's latest IPO filing.

The funds from the IPO will primarily be used to reduce debt and cover various expenses. KinderCare had initially filed for an IPO in 2021 but postponed the move last year due to regulatory approval delays.

Partners Group, which acquired KinderCare in 2015, will retain a controlling 71% stake in the company post-IPO. KinderCare's shares are expected to begin trading on the New York Stock Exchange under the ticker symbol "KLC" on Wednesday. Goldman Sachs, Morgan Stanley, Barclays, and JP Morgan are serving as the lead bookrunners for the IPO.

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