A.B.C. Learning Centres, the parent company of Learning Care Group, has entered into a memorandum of understanding to pursue a transaction with Morgan Stanley Private Equity whereby Morgan Stanley Private Equity will purchase a 60 percent stake in Learning Care Group and A.B.C. Learning Centres will retain 40 percent ownership.

“A significant factor in ABC’s decision to sell a portion of the U.S. business was to find a strategic partner who shares our vision for the child care industry and can help fund the continued growth of our business,” said William Davis, CEO of Learning Care Group. “This strong collaboration of ABC’s strategic position in the child care industry, coupled with the financial resources of Morgan Stanley Private Equity, will help to ensure that Learning Care Group attains its vision of operating the highest quality early education and child care facilities across the country.”

“We are excited to partner with ABC, a leading player in the early education and child care space, to facilitate Learning Care Group’s continued growth and profitability,” said Steve Trevor, Co-Head of Morgan Stanley Private Equity. “Learning Care Group is well positioned to take advantage of the excellent long-term growth prospects in the education sector and we are very pleased to work with its strong management team in that effort. We also look forward to partnering with ABC’s Australian-based executive team on this opportunity.”

Currently, Learning Care Group has approximately 1,150 corporate and franchise schools in its portfolio of brands, which includes Childtime Learning Centers, Tutor Time Child Care / Learning Centers, The Children’s Courtyard, La Petite Academy and Montessori Unlimited. It has a system-wide capacity to serve close to 167,000 children in the U.S. and internationally.

“Morgan Stanley Private Equity has impressed us with their desire to support our organization and I am delighted to have them as a U.S. partner,” said Eddy Groves, CEO (Operations) of A.B.C. Learning Centres. “The introduction of Morgan Stanley Private Equity as a majority shareholder in the U.S. business will significantly enhance our growth opportunities throughout the country.”

The current operations management team at Learning Care Group will continue leading the organization and the company’s structure and offices in Novi, Mich. and Chicago will also remain intact.

“All parties have a shared vision for ABC U.S. to continue the development of our brands for the benefit of all stakeholders,” Groves said.

About Learning Care Group, Inc.

Headquartered in Novi, Mich., Learning Care Group, Inc. provides early education and care services to children between the ages of six weeks and 12 years under its umbrella of brands: The Children’s Courtyard, Childtime Learning Centers, La Petite Academy, Montessori Unlimited and Tutor Time Child Care / Learning Centers.

Between these five brands, Learning Care Group has approximately 1,150 schools (corporate and franchise) with a system-wide capacity to serve close to 167,000 children in the U.S. and internationally. For more information on the Learning Care Group, Inc., please visit www.learningcaregroup.com.

About A.B.C. Learning Centres

For more information, visit the A.B.C. website at www.childcare.com.au.

About Morgan Stanley Private Equity

Morgan Stanley Private Equity, part of Morgan Stanley Investment Management’s Merchant Banking Division, makes private equity and equity-related investments on a global basis. Morgan Stanley Private Equity utilizes Morgan Stanley’s vast resources, including the Firm’s global franchise and relationships with leading corporates, management teams and financial sponsors, to source attractive opportunities for its investment funds. Morgan Stanley’s roots in private equity investing date back to 1985 with Morgan Stanley Capital Partners private equity funds. To date, Morgan Stanley Private Equity and its predecessor funds have invested nearly $6.5 billion of equity across a broad spectrum of industries.

Learning Care Group
Amy Popp, 248-697-9140
Apopp@learningcaregroup.com
or
Morgan Stanley Private Equity
Marie Ali, 212-762-6884
Marie.Ali@morganstanley.com