US Musical Colleges Acquired by Chinese Group
Kaiwen Education Group, the only K-12 Education company listed through the Chinese A share market, recently signed an agreement with New Jersey-based Rider University. Under the agreement, Kaiwen will establish a fully owned subsidiary in New Jersey to act as an umbrella entity for the three music colleges it purchased from Rider University: Westminster Choir College, Westminster Conservatory of Music and Westminster Continuing Education. Kaiwen agreed to pay USD50m for the colleges and will also take operational control. Kaiwen has developed a broader curriculum to serve its K-12 market in China, particularly in the PE, arts, and science areas. Through multiple partnerships, its partners include Major League Baseball (MLB) and the IMG Academy in the US, Manchester United Football Club and the Professional Golfers Association in the UK.
Another Hong Kong-listed mainland China Education group also focused on vocational education, ZhongJiao Edu Group, has expressed its strong interest in acquiring overseas assets in the VET, university and branded school sectors.
Other overseas education M&A activities by Chinese companies in the recent year include: Achieve Education acquiring one of the top 100 UK boarding schools, Chase Grammar School (Staffordshire), a Hong Kong-listed mainland fashion company, CBanner (QianBaiDu), purchasing 45% of Eton Pre-school Education Group, 51talk purchasing the American International School of Utah (AISU) and Bright Scholar (from a real estate development background) offering USD 1.6 billion for the purchase of the 2nd largest US pre-school education provider, Learning CareGroup (LCG).