BrightStar Education Group
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Arlington Capital Partners Announces New Platform Company BrightStar Education Group and Acquisition of Institute of Technology
WASHINGTON, DC, October 18, 2004 -- Arlington Capital Partners, a Washington, DC-based private equity firm, today announced the formation of BrightStar Education Group, Inc. and its acquisition of Institute of Technology, a leading California-based post-secondary education company.
BrightStar will pursue a consolidation of for-profit post-secondary education schools, with a focus in allied health, business, technology, culinary and other vocational curricula. Arlington Capital Partners has committed $50 million of equity capital towards its BrightStar post-secondary education consolidation effort. BrightStar's strategy includes organic growth through additional curricula and new campuses, the cross-utilization of curricula among separate schools, and the implementation of initiatives to standardize, replicate, and leverage successful internal processes. BrightStar's strategy will also include strategic investments and acquisitions.
The acquisition of Institute of Technology represents the inaugural transaction for BrightStar and will serve as a platform for BrightStar's growth in the industry. Institute of Technology is a post-secondary education company that serves approximately 1,700 students through four locations in northern and central California: Fresno/Clovis, Modesto, Sacramento and Roseville. The Company is accredited by the Accrediting Commission of Career Schools and Colleges of Technology (ACCSCT), licensed by California‚s Bureau for Private Postsecondary and Vocational Education (BPPVE), and is also authorized by the U.S. Department of Education to participate in Title IV programs.
"We became interested in the post-secondary education industry for a number of reasons, including its strong demographics, attractive growth prospects, and inherent barriers to entry" said Jeffrey Freed, a Partner of Arlington Capital Partners. "The growth is being driven in part due to a population in this country interested to gain additional skill sets and the successful student educational outcomes provided by for-profit schools. Students at these institutions get significant training towards a vocation, which is invaluable for them as witnessed by the successful job placement rates in this industry."
John Bates, a Principal of Arlington Capital Partners, said: "The post-secondary education industry is highly fragmented, with thousands of companies providing instruction to students. Our strategy is to pursue an industry consolidation in the sector with the $50 million equity commitment, providing BrightStar the opportunity to capitalize on synergies between separate schools while also improving the overall quality and scope of instruction for students. For example, we envision BrightStar taking curricula developed from one school, and successfully implementing those same curricula at a second school. This will not only provide value to BrightStar, but will also allow students an incremental career path opportunity through the additional potential course of study."
"The post-secondary education industry has a variety of potential avenues for growth, and BrightStar has the elements in place with the Institute of Technology acquisition to execute this long-term strategy," said Robert Christie, the Chairman of BrightStar and formerly the President and CEO of Thomson Learning, the second-largest global education and learning company.
Jim Hines, Laura Hines and their management team will continue to lead Institute of Technology in its growth strategy and focus on providing value and benefit to their students. Jim Hines commented: "We are excited to be partnering with Arlington Capital Partners, and to be a core contribution to BrightStar's overall vision. Our deliberate growth strategy will continue as we maintain the provision of successful educational outcomes and value to all of our students."
BrightStar is also proud to announce that the Honorable Tony Coelho, five-time U.S. Congressman and formerly the House Majority Whip, and John Danielson, a Principal of The Dilenschneider Group and formerly Chief of Staff to U.S. Department of Education Secretary Rod Paige, have agreed to serve as Board members of BrightStar.
About Arlington Capital Partners:
Arlington Capital Partners (www.arlingtoncap.com) is a Washington, DC-based private equity fund with over $450 million of committed capital focused on middle market buyout investment opportunities in growth industries including the business services and outsourcing, aerospace/defense, IT and engineering services, media, education and training, healthcare services, and specialized manufacturing and related industries. The firm's professionals have a unique combination of operating and private equity experience that enables Arlington to be a value-added investor. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their company‚s position as leading competitors in their field.
About Institute of Technology:
Institute of Technology (www.it-colleges.com) is a leading post-secondary education company, offering instruction in numerous career training sectors in demand including allied health, business, information technology, culinary, and technical. The Company serves approximately 1,700 students through four locations in northern and central California: Fresno/Clovis, Modesto, Sacramento and Roseville. The Company is accredited by the Accrediting Commission of Career Schools and Colleges of Technology (ACCSCT), licensed by California‚s Bureau for Private Postsecondary and Vocational Education (BPPVE), and is also authorized by the U.S. Department of Education to participate in Title IV programs. The Company has been providing value and successful outcomes to its students since 1986.
SOURCE: Arlington Capital Partners
Arlington Capital Partners
Jeffrey Freed or John Bates
600 New Hampshire Ave., NW
Suite 660
Washington, DC 20037
(202) 337-7500
jfreed@arlingtoncap.com or jbates@arlingtoncap.com
Institute of Technology
Jim Hines
7080 N. Whitney Avenue
Suite 102
Fresno, CA 93270
(559) 229-1845 x234
jhines@it-email.com
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