Education business sold in £56.5m deal

Education group RM has bought Connect Education & Care in a £56.5m deal.

Connect Group’s education and care business has been sold after it received a number of approaches.

The business, which employs 300 people and has a base in Shrewsbury, generated EBITDA – a measure of profitability – of £9.0m in the year to August 2016 on sales of £64.8m.

Mark Cashmore, Connect Group’s chief executive, said: “Having received a number of approaches and after conducting a detailed review, we have concluded that the disposal represents the right option for the Group, the division and our strategy.

 

“The disposal will provide the group with greater financial flexibility as we continue to drive our operational priorities and growth strategy.”

Connect Education & Care currently serves more than 30,000 customers through its brands The Consortium and West Mercia Supplies (WMS).

WMS was acquired by The Consortium from its four local authority owners – Shropshire, Hereford, Worcestershire, and Telford and Wrekin – in 2012.