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Duke Street creates EduServices to lead expansion in French education sector


Duke Street has invested in newly-created education business, EduServices, which is expected to become a leading player and consolidator in the private post-secondary education (PPSE) market in France.

EduServices has been created by the acquisition of two companies in the PPSE sector, CDF and Forteam. Duke Street has identified a unique opportunity to build a leading institutional player through further consolidation of the sector.

Through its schools network, EduServices currently trains 13,000 students each year in a variety of courses ranging from: short vocational studies to master level in Sales, Accounting, Communication and Hospitality qualifications. Current sales are approximately €65 million.

Duke Street worked exclusively with CDF and Forteam management over the past 12 months to define EduServices’ ‘buy and build’ strategy and has already identified a long list of potential additional acquisition targets. Both acquisitions were completed outside competitive processes.

“EduServices is the fourth acquisition Duke Street has completed outside a competitive process in 2010. We continue to focus on off-market acquisitions, exploiting the current market opportunity by acquiring businesses at attractive multiples leveraging our strong origination network. EduServices will provide a great platform to build critical mass in this growth market through a buy and build strategy,” comments Didier Bismuth, partner at Duke Street.

The French PPSE sector is a €2 billion market with attractive growth characteristics. It is fragmented with extensive build-up opportunities - more than 200 small to mid-sized businesses operate in the sector. French PPSE is growing over 8.6% CAGR* (2005-09) at the expense of a contracting public sector.

CDF is a top four PPSE player, with a strong geographical presence and operating in 16 cities throughout France. Forteam is a leading regional player in the west of France, with a presence in Rennes, Angers, Caen and Nantes.

EduServices’ management team will be led by chief executive Philippe Grassaud, founder of CDF, who will remain a significant shareholder of the enlarged group, and will work closely with the Duke Street team to lead consolidation within the sector.

The acquisition was led by Didier Bismuth, supported by Vincent Dupuy and Philippe de Lestrange. Duke Street operating partner Jean Garbois will chair the Board.