Anchorage Capital beats rival buyer for Affinity Education

Anchorage Capital Partners has acquired Australian-listed childcare centre operator Affinity Education Group for A$258 million ($185 million; €170 million), according to the firm.

Affinity Education had been targeted by rival childcare provider G8 Education earlier this year, which built a 19.9 per cent blocking stake.

The company approached the takeover panel alleging that G8 Education had breached regulations by acquiring shares outside of its on and off market takeover bids through numerous associated parties. Following a “declaration of unacceptable circumstances” G8 abandoned its plans.

Queensland-based Affinity owns and operates a portfolio of 165 early childhood learning centres across Australia, holding around 12,000 places for children and employing around 3600 staff.

“This transaction demonstrates how private equity fund buyers can execute complex public market transactions in circumstances where an aggressive competing suitor holds a blocking stake,” said Ricky Casali, lead partner at Mintor Ellison, Anchorage’s legal adviser.

Anchorage typically invests in firms of A$50-150 million in well-established industries that are not technology-related.

In April, Anchorage acquired Mark Group Australia (MGA) a market leader in solar photovoltaic installations. And in March it acquired children’s footwear retailer Shoes & Sox for a reported A$$20 million.

The firm closed its most recent vehicle in March 2013, Anchorage Capital Partners II, on A$250 million, after commencing fundraising in November 2012, according to PEI Research and Analytics.

Anchorage has A$450 million under management.