M&A

10 November, 2009

UPDATE 1-BC Partners in $331 mln bet on U.S. career training

* To buy Texas-based ATI Enterprises

* BC to spend up to $331 million from current fund

* Roughly $250 mln of debt also backing buy from Riverside

* Management to keep 12 percent stake in company

(Updates with confirmation from BC)

LONDON, Nov 10 (Reuters) - Private equity firm BC Partners [BCPRT.UL] is staking up to $331 million on strong growth in U.S. career training, buying Texas-based ATI Enterprises from middle-market rival The Riverside Company.

BC will invest the money from its current fund, alongside roughly $250 million of debt, to buy ATI, which offers courses in subjects such as welding, dental assisting and personal training.

London-headquartered BC said on Tuesday said it saw an "attractive market opportunity supported by underlying demographics, economics and government attention on education."

It expected ATI to generate revenue of $245 million in 2009.

The deal is the fourth undertaken by BC this year, after it invested $350 million in Office Depot (ODP.N), bought and merged two laboratory testing companies, and put new money into Baxi as part of a merger of the boiler-maker with a Dutch rival.

Goldman Sachs advised BC Partners and arranged the financing. Robert W Baird and Piper Jaffray advised the Riverside-led consortium.

Based in Dallas, ATI Enterprises operates vocational schools and training centers in Texas, Florida, Oklahoma, Arizona and New Mexico.

Management will keep a 12 percent stake and the deal is expected to close around the end of this year, BC said.

(Visit the Reuters DealZone blog here)

(Reporting by Quentin Webb; additional reporting by Ajay Kamalakaran in Bangalore; Editing by Hans Peters)

Source: http://www.reuters.com