Bright Horizons Family Solutions IPO: The child care and early education services company filed an $220 million transaction with the U.S. SEC (Securities and Exchange Commission). The company plans to trade its shares of common stock on the New York Stock Exchangeunder the symbol “BFAM.” Bright Horizons Family Solutions was listed on Nasdaq since 1998 and went private in May 2008, when the company was acquired by investment funds affiliated with Bain Capital Partners, LLC.
Bright Horizons Family Solutions Inc. operates as a provider of child care and early education services, including center-based full service child care and early education, back-up dependent care and educational advisory services.
As of June 30, 2012, the company had more than 850 client relationships with employers and operated a total of 773 child care and early education centers.
From 2001 through 2011, Bright Horizons Family Solutions grew its revenue and adjusted EBITDA at a compound annual growth rate of 11% and 17%, respectively. The company’s net income increased at a compound annual growth rate of 23% from 2001 to 2007 but incurred net losses for 2008 through 2010, primarily due to the additional debt service obligations and amortization expense associated with its going private transaction. The company posted net income $4.8 million for 2011 versus the previous year’s net loss of $10.0 million. For the first half 2012, the company recognized net income of $1.7 million, EBITDA of $89.1 million, and adjusted net income of $19.8 million, on revenue of $529.6 million.
Net proceeds from Bright Horizons Family Solutions IPO will be used to redeem aggregate principal amount and accumulated interest of senior notes and for working capital and for general corporate purposes.
Goldman, Sachs & Co., J.P. Morgan Securities and Barclays Capital are acting as the representatives of the underwriters for Bright Horizons Family Solutions IPO. BofA Merrill Lynch, Credit Suisse, Baird, BMO Capital Markets, Stifel Nicolaus Weisel and SMBC Nikko are also hired as co-managers on this deal.
Bright Horizons Family Solutions IPO