Dubai's Taaleem to buy leading nursery school operator

Dubai: The Dubai based schools operator Taaleem is buying a 95% stake in Kids First Group Ltd., one of the leading upscale early learning education provider in the Gulf.

The deal will be fully funded through a mix of equity and debt and expected to close by the fourth quarter of Taaleem’s 2024/25 financial year. (This is subject to regulatory approvals.)

KFG operates 34 nurseries in Dubai, Abu Dhabi and Doha, offering four 'distinct curricula through its prestigious brands'. These include Redwood Montessori Nursery, Odyssey Nursery, Willow Children’s Nursery, Ladybird Nursery and Children's Oasis Nursery.

The combined student count at KFG nurseries is 5,000.

"This acquisition strategically positions Taaleem to expand into the rapidly growing early-learning sector, complementing its existing portfolio of (K-12) schools," said a statement.

"KFG’s unique, scalable platform immediately enhances Taaleem’s value and earnings profile, delivering immediate shareholder accretion and contributing strong cash flows from day one."

The UAE education sector has seen a pipeline of deals, whether it's about Taaleem acquiring the rights to build and open schools under the Harrow brand, or GEMS getting some major investors onboard as it expands its network, including what will be one of the most expensive schools in the UAE.

Amidst all this activity, the early education space has been doing well in its own right. The Taaleem deal for KFG shines the spotlight further on what is an already high-yield business space.

"Upon completion of the acquisition, KFG will operate as a standalone vertical within Taaleem," said the statement.

The founder and 5% shareholder of KFG, will 'continue to oversee the future growth as the CEO'.

"The current KFG management team will continue to leverage their operational expertise and strong track record of successfully growing the portfolio," the statement added.