British private equity giant TDR Capital is reportedly planning a £2.5bn-plus sale of professional training course business BPP.
TDR, behind firms including Asda and David Lloyd, has hired bankers from Houlihan Lokey and Morgan Stanley for an auction of BPP, according to The Sunday Times.
Industry sources said they expected the bidding process to start after the summer, when investors will have insight into BPP’s autumn intake, and that the business was likely to be sold to another private equity firm.
CVC Capital Partners, Permira and TPG are among private equity firms to have made large investments in the education industry in recent years.
TDR, Houlihan Lokey and Morgan Stanley declined to comment on a potential sale of BPP.
A sale in excess of £2.5bn would mark a hefty and quick return for TDR, which is understood to have purchased BPP for less than £700m in 2021.
BPP was founded in 1976 and runs courses for professionals, including lawyers and accountants. It later listed on the London Stock Exchange before being bought by Apollo Education Group in 2009.
Under TDR, BPP has made a several acquisitions to grow into new sectors and territories, including buying the Digital Marketing Institute in 2023 and Buttercups Training this year, which trains pharmacists, pharmacy technicians and hospital support staff.
City sources told the Sunday Times BPP was poised for annual earnings in excess of £130m if it completes the acquisition of Canada’s Acsenda School of Management from Australian firm EduCo, which is expected to be announced soon. EduCo did not respond to a request for comment.
BPP’s corporate clients include the NHS, banks Natwest and Santander, law firms Hogan Lovells and Allen & Overy and accountancy firm Grant Thornton.