Investment firm BPEA EQT reached an agreement with Endeavor Group Holdings Inc. to buy IMG Academy, the entertainment behemoth’s sports arm for developing some of the top high school athletes in the US, for an enterprise value of $1.25 billion.
(Bloomberg) — Investment firm BPEA EQT reached an agreement with Endeavor Group Holdings Inc. to buy IMG Academy, the entertainment behemoth’s sports arm for developing some of the top high school athletes in the US, for an enterprise value of $1.25 billion.
In an effort to build out its global presence, the acquisition of IMG Academy will also include a partnership with Nord Anglia Education, a BPEA EQT portfolio company and international education curriculum provider, according to a statement on Tuesday. The deal is an all-cash transaction and is slated to close in the third quarter, the companies said.
Jack Hennessy, a parter and co-head of education at BPEA EQT, said discussions began last year originally as a partnership between IMG Academy and Nord Anglia. But internal talks about interest in the US-based academy a standalone business ramped up in 2023, Hennessy said in an interview.
Adding to its effort to be a purpose-driven investment firm, Hennessy highlighted that “we want to focus on the health and wellness theme.” As part of this transaction, BPEA’s Private Equity Fund VIII is expected to be 20% to 25% invested. BPEA EQT, part of publicly traded EQT, was formed through the combination of the private equity teams of Baring Private Equity Asia and EQT Asia.
Founded in 1978 through the Nick Bollettieri Tennis Academy, IMG Academy is an athletics-focused education brand that the company operates through its on-campus site in Bradenton, Florida.
The boarding school serves more than 1,400 full-time students academically and offers more than 15,000 camp experiences annually, according to Endeavor’s most recent filing. In 2021, IMG Academy helped place 30,000 students in college, it says on its website.
“IMG Academy is in great hands for its next chapter with BPEA EQT,” Endeavor President and COO Mark Shapiro said in a separate statement.
The Raine Group advised Endeavor on the sale, with Latham & Watkins LLP acting as legal counsel. BPEA EQT was represented by Deloitte, Oliver Wyman, and Ropes & Gray LLP.
(Updates with BPEA EQT partner’s comments starting in third paragraph)
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