Sterling Partners has sold its portfolio company, School of Rock, to Youth Enrichment Brands, a portfolio company of Roark Capital.
Youth Enrichment Brands (YEB) is a provider of youth activities with a program portfolio that includes youth camps, swim classes, and sports leagues to more than 700,000 children ranging from 2 to 18 years old.
The company’s operating brands include US Sports Camps, a California-based provider of baseball, basketball, field hockey, football, golf, soccer, softball, and e-sports camps for youths from 6 to 18 years old. The company is also the official provider of Nike Sports Camps; i9 Sports, a Florida-based multi-sport provider of youth sports programs including flag football, soccer, basketball, baseball, volleyball, lacrosse, and tennis, with over 925 locations across 30 states; and Streamline Brands, is a Colorado-based operator and franchisor of more than 250 swim schools in 31 states under the SafeSplash, Saf-T-Swim, Swimtastic, Miller Swim School, and SwimLabs brands.
Roark Capital first invested in YEB in September 2020 through the acquisition of US Sports Camps and rebranded the company under the Youth Enrichment Brands platform following the acquisition of i9 Sports from LNC Partners in October 2021. YEB acquired Streamline Brands from Quad Partners in 2022.
YEB’s newest acquisition, School of Rock, is a for-profit music education program for children – preschoolers to teenagers – and even adults. Many of its students are in a performance-based program – keyboards, bass, guitar, drums, and vocals – where students are accepted at any skill level, with the goal of getting them on stage, playing a concert before a paying audience. The most skilled students in each school form a band and play concerts in their city, and the top students from each school compete to become a member of an “All-Star” band and tour regionally.
Sterling Partners first invested in School of Rock in 2009. Since then, the company has grown from less than 6,000 students to over 180,000 annually. Founded as a single school in Philadelphia in 1998, School of Rock has become a rapidly growing international franchise with over 500 schools open and in development across 16 international markets including the United States, Chile, Canada, Brazil, Peru, Colombia, South Africa, Mexico, Australia, Paraguay, Taiwan, Ireland, Spain, Portugal, and the Philippines. According to the company, it is the largest music education franchise system in the world.
School of Rock, led by CEO Rob Price, is headquartered near Chicago in Burr Ridge, Illinois. “With Sterling’s support, expertise, and network, we have been able to truly distinguish our results-driven approach to music education,” said Mr. Price. “The success we’ve seen with Sterling as our partner has been unmatched, as have the strategies we’ve worked on together to get here. Now, I’m looking forward to the next phase as we build on this momentum and continue to be the ultimate music school for kids and adults.”
“Everyone involved in School of Rock – from leadership to instructors – has been singularly focused on enriching students’ lives through music. It has been incredible to be part of such a tremendous mission-based journey,” said Avi Epstein, a managing director at Sterling Partners. “Its business model is highly differentiated from other franchising models, and with Youth Enrichment as its next partner, there is no shortage of runway for continued growth for years to come. It has been fantastic to collaborate with Rob and the entire School of Rock team. We will be eagerly watching Youth Enrichment Brands and School of Rock and wishing them tremendous success.”
Sterling Partners makes control, non-control, and preferred equity investments in a variety of companies in various stages of growth from early-stage, high-growth businesses to mature, profitable companies. The firm was founded in 1983 and is headquartered in Chicago.
Baird was the financial advisor to both Sterling and School of Rock on this transaction.
© 2023 Private Equity Professional | November 10, 2023
