Taaleem to Acquire Kids First Group, Expanding GCC Early Learning Reach

• Taaleem Holdings to acquire 95 percent of Kids First Group (KFG) a premium early-learning provider with 34 nurseries and 5,000+ pupils across Dubai, Abu Dhabi, and Doha as part of its expansion into the early education sector.
• The deal, expected to close in Q4 FY2024/25, will be fully self-funded and cashflow accretive from day one, with KFG operating as an independent vertical under founder Kamil Najjar’s continued leadership.
• This strategic acquisition strengthens Taaleem’s full education pathway from nursery to K-12, aligning with its value-driven growth strategy and reinforcing its leadership in high-quality, scalable education across the region.

KFG has a portfolio of very well-known brands such as Redwood Montessori Nursery, Odyssey Nursery, Willow Children's Nursery, Ladybird and Children's Oasis with four distinct curricula across 34 nurseries in Dubai, Abu Dhabi and Doha with over 5,000 pupils, and an opportunity for growth within the portfolio.

This acquisition is consistent with the disciplined and value-focused strategy of Taaleem in deploying capital and is anticipated to bring strong cashflows to the Group and be financially accretive to shareholders of Taaleem.

After the acquisition, KFG will be a standalone vertical in the portfolio of Taaleem. Mr. Kamil Najjar, the Founder and 5 percent owner of KFG, will lead the growth of the group in the future. As CEO, Mr. Najjar and the existing management team will continue to leverage their operating acumen and strong history of successfully expanding the portfolio.

The deal is pending regulatory approvals and is anticipated to close in Taaleem's Q4 financial year 2024-25.

United Arab Emirates, Dubai Taaleem Holdings PJSC (the Group or Taaleem), one of the UAE's top K-12 premium education providers, today announced that it has entered into a Sale and Purchase Agreement (SPA) to purchase 95% shareholding in Kids First Group Limited (KFG), a premium GCC early-learning education provider.

KFG adds Taaleem's very sought-after K-12 to KFG's network of high-rated premium nurseries. The transaction is anticipated to provide a value-accretive growth for Taaleem into high-growth early-learning space with instant accretion to both earnings and cashflow.

KFG has a higher-spec, diversified network of 34 centrally located nurseries with prime positioning in proximity to business districts and within residential districts in Dubai, Abu Dhabi and Doha. It currently educates over 5,000 students across several top brands. KFG has four curricula to offer at different price points, allowing the company to provide a bespoke education offering that reaches a wide segment of the market. The business is cashflow accretive from day one.

KFG presents a rare opportunity for Taaleem to gain a 'plug-and-play' platform with a strong history of delivering and scaling high-growth. The transaction aligns with Taaleem's value-driven and disciplined approach in allocating capital.

The acquisition will be completely self-funded with a combination of equity and debt and is anticipated to close in Q4 of Taaleem's financial year 2024/25, subject to regulatory approvals and other conditions pre-completion.

Khalid Al Tayer, Board Chairman of Taaleem, stated "This acquisition of Kids First Group marks an important next step in Taaleem's expansion strategy. By growing further in the early-learning education segment, we are building a complete education pathway supporting children from their very earliest stages of development through K-12 education". Kids First Group's established reputation and wide network of top nurseries, which enjoy strong recognition and demand among parents, highly complement our current market-leading portfolio, as well as diversifying Taaleem's proposition further. This strategic acquisition reinforces our defensive stance and our focus on scalable, high-quality education in the region.

Philippe Tapie, Chief Executive Officer for People & Baby Group, commented "We are extremely proud to have collaborated with Kamil Najjar and of what Kids First Group has achieved in the years since its inception, establishing a reputable network of high-quality nurseries that put children's development and wellbeing at the forefront of everything they do". Having been long-time guardians of KFG, it is our honor to entrust its future to Taaleem, one of the most established and innovative education providers in the region. We have no doubt that the legacy of KFG will continue to thrive under Taaleem's care and are grateful to the families, teachers, and partners who have guided this journey so far.

Kamil Najjar, Founder and Chief Executive Officer of KFG, said “Since its inception, KFG has been built for one unwavering purpose: the well-being and development of the KFG individual child. For over 14 years, this singular mission has guided the Group’s growth and success. Today marks an exciting new chapter in KFG’s journey. Taaleem’s strong educational legacy will enable both organisations to enhance educational standards and accelerate the growth of premium early-learning centres. Together, KFG and Taaleem are committed to setting a new benchmark in early childhood education - preparing children to thrive in an increasingly complex and fast-evolving world, and ensuring they benefit from holistic, world-class learning environments from their earliest years".

After its acquisition is completed, KFG shall be operated as an independent vertical business in Taaleem's portfolio, with the current management, including its founder,Kamil Najjar, remaining a Shareholder with a 5% holding and collaborating with Taaleem's Board of Directors to draw upon their extensive experience in the industry and demonstrated record of delivering sustainable growth and high-quality education.

Deloitte Corporate Finance Advisory Limited served as Financial Adviser and Freshfields Bruckhaus Deringer LLP served as Legal Adviser to Taaleem; whereas Centerview Partners and Linklaters LLP served as Financial and Legal Advisers respectively to People & Baby Group.