Sofina Cognita Schools Is Up For Sale With A Significant Valuation Uptick
‘The Times' has reported that Cognita School's majority shareholder Jacobs Holding has appointed financial advisors to explore a sale or an IPO of Cognita Schools with Permira, CVC and Blackstone having shown initial interest. The article also mentions that Cognita's EBITDA is more than £260.0m (€304.4m) and that Cognita could comfortable attract a valuation of 18-20x EV/EBITDA, implying an enterprise value of €5.5b-€6.1b. We think that such a valuation is indeed possible since Nord Anglia Education (UK-based international school network) was recently valued using similar EV multiples at $14.5b, following an investment from EQT, Neubergen Berman, Canada Pension Plan and Mubadala. Another reason why such EV multiples could be commanded is because private schools are rather insulated from economic shocks. We currently estimate Sofina's 13.4% stake in Cagnita Schools to be worth €504.2m. We reiterate our BUY rating and €315.0 TP.SOFINA is an investment company whose portfolio consists of shareholdings in various companies. Co. manages a portfolio of long-term and short-term investments. Its portfolio comprises investments in companies which are active in sectors such as: Energy and Services (GDF Suez, Suez Environnement, bioMerieux and Exmar); Retail (Colruyt, Delhaize); Consumer goods (Danone, Rapala, B & W Group, and Chapoutier); Satellite operators (SES); Finance Companies (Eurazeo, Caledonia, Luxempart, RAB Capital); Industry (Petit Forestier, Landis + Gyr, Carbone Lorraine and Deceuninck) and Alternative assets (Private equity, Hedge funds).
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