Canadian fund completes Acorn buyout

A NORTH West provider of fostering services and operator of schools for children with special educational needs, has changed hands in a deal reportedly worth £150m.

Bolton-based Acorn Care and Education, which was set up in 2005,by Kevin McNeany, a veteran of the education sector, has been bought by Teachers’ Private Capital, the investment arm of the Ontario Teachers’ Pension Plan.

The deal will trigger a multi-million pound windfall for Mr McNeany and also spark an exit for private equity firm Phoenix Equity Partners, which has backed Acorn’s buy and build strategy with 13 deals.

A brief statement on the company’s website said:”Acorn Care and Education has
completed a refinance under the leadership of the Ontario Teachers’ Pension Plan, which looks after the pensions of some 284,000 active and retired teachers in Ontario, Canada.

“This new partnership will allow Acorn Schools and Fostering Solutions to continue their growth and investment in high quality services for children and young people.”

Acorn operates 10 schools – six of which are based in the North West – and has one of the largest private fostering networks in the country.

TheBusinessDesk.com said yesterday that the Canadian fund had outbid Hg Private Equity to buy the business.

James Thomas, a managing partner of Phoenix Private Equity, commented; “By investing substantial growth capital since 2005, and by working hard alongside
Acorn’s excellent management team, we have together succeeded in establishing Acorn in its leading position.

“We wish the management team and Teachers every success in the next phase of the company’s development.”