3i backs education

Investee Company – Educational Information Group (EIG), (Netherlands/Belgium)

Investee Company Business Type – Publishes educational materials

Type of Financing – MBO

Equity Providers – 3i, Management

Equity Leader (Individual) – Chris Graham

Debt Providers – N/A

Debt Type – N/A

Debt Leader (Individual) – N/A

Equity Amount – N/A

Total Deal Value – euro195 million

Other Advisors – ABN AMRO Bank NV advised VNU, UBS Warburg and PricewaterhouseCoopers provided financial advice to 3i

Comments – Dutch media group VNU has sold its Educational Information Group (EIG) in line with its strategy to streamline its activities focusing on: marketing and media information, business information and directories. This comes after the sale of its consumer magasines business to Sanoma last month.

3i has backed the management buyout, which is said to total approximately euro195 million. EIG consists of two operating companies L.C.G. Malmberg b.v. and Uitgeverij Van In n.v. based in The Netherlands and Belgium, respectively. In 2000 EIG generated net revenues of approximately euro76 million and operating income (EBITA) of euro17 million.

This deal highlights the value being placed on the educational market. Chris Graham, head of media investment at 3i, commented: “There has been a wave of consolidation in the US and we will see that happen in Europe. The three main players have all been getting their strategic positions in the US sorted out and within three to four years the consolidation will shift to Europe. The macro economic backdrop for education is very positive. Every major economy has begun to realise that education is the key to long term economic success.”