Our education correspondent, GENE BRODIE, on how private equity firms are circuling around a profitable private schools business
Profitable business: Cognita, which owns Cumnor House, is up for sale
The company which owns Croydon’s Cumnor House prep schools and nurseries is reported to be considering putting their global business up for sale for £5billion.
The news was broken yesterday in a report in The Times newspaper – just before Cumnor House stages its annual open days for prospective customers parents.
Cognita, the parent company, operates more than 100 fee-paying schools across 17 countries around the world.
“We are proud to be part of this community and actively help to shape it,” the Cumnor House schools say of Cognita on their website.
“Each school within the Cognita family preserves its distinct character and remains deeply rooted in its local community. Crucially, these diverse experiences across the world foster inspiration, shared support, and growth opportunities for every school within our group.”
And they say, “By being part of the Cognita family, we open the door to a global community… that’s rich in knowledge, opportunities and best practices, ensuring every child gets an education that’s, quite literally, world class.”
But that could be about to change, according to The Times. “Private equity giants are circling one of the biggest owners of private schools in the UK, as its owners tee up a sale that could value the business at £5billion,” the report says.
Commodifying education: Cumnor House, which has expanded to four schools in the past 15 years, was acquired by Cognita in 2010
“It is understood that private equity firms including Permira, CVC and Blackstone are among the potential buyers of Cognita, which was co-founded by the late Sir Chris Woodhead, the government’s former chief inspector of schools.”
Cognita owns 39 schools across the country, including the four Cumnor House schools.
Cumnor House boys’ prep (for ages four to 13), traces its history to 1910, but set up in its eponymous building on Pampisford Road, South Croydon, in 1931; Cumnor House Girls’ prep (for four- to 11-year-olds) dates from 2010 and is based on Woodcote Lane in Purley; there is also a Purley kindergarten and pre-school (for children aged between two and four) on the Webb Estate (where else?); and their South Croydon kindergarten and pre-school, which overlooks the boys’ prep’s generous playing fields on Pampisford Road.
According to the Independent Schools Council, Cumnor House has around 340 boy pupils and 50 girls, whose parents pay annual fees (exclusive of VAT) of between £9,500 and £17,238.
Cognita acquired Cumnor House in 2010.
Educationalist: the former chief inspector of schools, Chris Woodhead, founded the Cognita business
Cognita, in its annual report published last year, said that it feels the risk to its overall business of the Labour government’s decision to impose VAT on private schools to be low because of its wide geographical spread.
Cognita was founded in 2004 by Woodhead and private equity firm Bregal. Another Private Equity firm, KKR – now also the owners of incinerator operators Viridor – invested in 2013. In 2018 the company was sold to Jacobs, a Zurich-based investor set up by Swiss billionaire Klaus Jacobs, for £2billion.
The Times says: “Jacobs looks set to cash in on Cognita at a time when valuations in private and international school companies are rising. Some investors are attracted by the sector because it offers relatively reliable revenues even when the global economy is uncertain, because children still need to be educated and wealthy parents are willing to pay their fees.”
The newspaper reported that Cognita’s current earnings before interest, tax and other items is north of £260million per year – hence the juicy, multi-billion valuation.
The Croydon Advertiser sold an average of just 742 copies per week last year (ABC 2024 audit).
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