The Merger of the Decade

11/29/2004

"It is only when the cold season comes that we know the pine and cypress to be evergreens." - Chinese Proverb

The Merger of the Decade

In 2003 Knowledge Learning Corporation (KLC), the fourth largest US for profit child care chain, made news when it acquired Children's World Learning Centers, the third largest chain. At the time this was the largest merger in the history of child care in the US. Then in early November 2004, KLC trumped even this news with its acquisition of KinderCare Learning Centers, the nation's largest chain.

The merger deal, which is expected to be completed by the end of 2004, calls for KLC to pay $550 million in cash for all outstanding equity in KinderCare, and to assume $490 million of KinderCare's debts.

Thomas A Heymann, Chairman and CEO of KLC and intended leader of the combined companies, remarked, "This merger brings together the finest early childhood care and education companies in America. Our combined resources and trained employees will enable us to establish higher standards in the delivery of care that will help children enter school ready to learn and build a lifetime love of learning."

In its upcoming January 2005 issue, Exchange will feature an interview with Heymann exploring his views on how these two mergers will be integrated into a single culture, and what other future plans KLC has in store.

For more information about Exchange's magazine, books, and other products pertaining to ECE, go to www.ccie.com.