KinderCare revives plans for long-sought US IPO
Adds detail on new CEO, industry context and financial details in paragraphs 2-7
Sept 6 (Reuters) -KinderCare Learning Companies, a provider of early childhood education that first filed for a stock market listing three years ago, is rebooting its bid for an initial public offering in the United States.
The IPO would be among the first major moves by KinderCare's new CEO Paul Thompson, who took over the reins in June after his predecessor Tom Wyatt's 12-year stint.
The 55-year-old company, based in Oregon, is one of the biggest players in a highly decentralized market. It has over 1,500 centers for children ranging from six weeks to 12 years of age.
In 2015, it was bought by investment firm Partners Group, which will continue to be the controlling shareholder after the IPO.
The availability of child care services often plays an important role in employment decisions. Surveyshave shown that several parents choose to leave work or reduce office hours in the absence of child care.
But skeptics have questioned the sustainability of the business model. In ablog in April, the White House Council of Economic Advisers said there was a persistent gap between the cost of providing high quality care and prices that families can afford, with low-income families facing the biggest costs.
KinderCare's revenue grew 6% from last year to $1.34 billion in the first half of 2024. It earned $26.8 million in the same period versus $71.7 million last year.
The company hadfirst filed to list its shares in 2021 but abandoned its plans lastyear.
A consortium of 12banks, led by Goldman Sachs, Morgan Stanley, Barclays, and J.P.Morgan, is underwriting the IPO.
KinderCareaims to list its shares on the New York Stock Exchange under the symbol "KLC."
Reporting by Niket Nishant in Bengaluru; Editing by Tasim Zahid and Maju Samuel
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