Duke Capital Ltd (LON:DUKE), a leading provider of hybrid capital solutions for SME business owners in Europe and North America, has announced that its existing capital partner, Step Investments Limited, has successfully completed the sale of its own subsidiary, City Education & Learning Group Limited.
Step is a diversified investment group with core interests in the education, cinema advertising, outdoor digital advertising and radio station sectors across the UK and Ireland. Duke has invested £11.5m of capital in Step since its initial investment in 2018. The Step group includes Pearl and Dean Cinemas Limited, Pearl and Dean Ireland, Wide Eye Media, City Education & Learning Group Limited, Adtower Limited and Bay Broadcasting Limited.
Highlights:
· City Colleges has been acquired by Planet Education Works (PEN), a leading provider of educational services and solutions, headquartered in London. With a mission to revolutionise education through innovation, PEN operates a diverse portfolio of institutions and online platforms, offering a wide range of programmes and services across the education spectrum.
· On completion of the sale, Step received initial cash proceeds of €5.2m.
· A put and a call option has been agreed for the sale of Step’s remaining 25% interest on the second anniversary date for a further €3.0m at an exercise price of €120,000 per share, valuing City Colleges at €12.0m.
Neil Johnson, Duke Capital CEO said:
“The team at Step continue to prove themselves as savvy dealmakers who are able to identify attractive businesses with potential for scalability. The sale of City Colleges is on the back of strong operating performance and increased business diversification, which in turn, invited a strong offer for the business by PEN.”
Mike Ormonde, Step CEO said:
“This exit represents an outstanding return for Step having taken majority control of City Colleges just three years ago in a transaction funded by Duke. The proceeds from the sale will allow Step to continue its buy and build strategy with a renewed focus on media opportunities across the UK and Ireland.”
