American Education Group Finds Add-on
The private equity-funded AEG looks to expand Little Sprouts’ business model to primary schools
March 6, 2008
American Education Group (AEG), the Michigan-based private school company has acquired Little Sprouts, a Boston-based pre-kindergarten educational services operator. The purchase price was not disclosed.
AEG was launched in March 2007, with a $40 million joint commitment from private equity firms Winona Capital Management and Chicago Growth Partners, and has made three educational company acquisitions in this time.
Speaking with MergersUnleashed, Peter G. Ruppert, president of American Education Group, praised the Little Sprouts business model for initiating age-appropriate exercises that develop academic excellence among very young students. He intends to open as many as six additional Little Sprout centers across Massachusetts within the next two years. Little Sprouts presently runs seven centers in the Boston area that serves an estimated 1,200 students. Little Sprouts is the first pre-K school that AEG has acquired.
Ruppert also discussed the likelihood AEG will “synergize and share Little Sprout’s best practices” with the company’s other holdings. He expects to launch primary elementary schools based on the Little Sprouts model, citing a trend in the industry towards more specialized private schools to meet individual needs of students.
Winona Capital Management managing director Dan Kipp said he believes in AEG’s specialized educational programs because “[Students] do better with a custom-tailored suit than with a off-the-rack suit.”
Prior to founding AEG, Ruppert was President and CEO of National Heritage Academies, the Michigan-based charter school operator. AEG has not received additional equity infusion since its original $40 million, according to Ruppert.
Susan Leger-Ferraro, founder and president of Little Sprouts, will continue in her position and will also be an AEG minority shareholder.
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