Replacement content
Childtime Learning Centers
Childtime Learning Centers was the fifth largest childcare operator in the U.S. at the time of the acquisition (then known as Gerber Children’s Centers) with 120 centers in ten states. TGV was attracted to Childtime by the opportunity to expand the number of centers by acquisition as well as construction, by the strong cash flows of the existing asset base, and by the substantial underlying real estate value (owned centers and vacant land had value equal to the purchase price).
A TGV-led buying group purchased Childtime from Gerber Products Company in July 1990 for $41 million in a LBO transaction. The company completed an initial public offering and retired its remaining acquisition debt in February 1996. TGV arranged a block sale of stock for its investors in July 1998 at a price that was 6.4 times it’s original purchase price.