KinderCare Learning Centers

Last updated
KinderCare Learning Centers
Company typeIncorporated, Private
New York Stock Exchange Ticker KLC
Industry Early Childhood Education
FoundedJuly 14, 1969;55 years ago (1969-07-14)
Montgomery, Alabama, U.S.
FounderPerry Mendel
Headquarters Portland, Oregon, U.S.
Number of locations
1,250 locations (2023)
Key people
Tom Wyatt, CEO [1]
RevenueUS$7.8 billion (2021)
Number of employees
36,000 [1]
Parent KinderCare Education
Website www.kindercare.com

KinderCare Learning Centers, LLC [2] is an American operator of for-profit child care and early childhood education [3] facilities founded in 1969 and currently owned by KinderCare Education based in Portland, Oregon. [4] [5] The company provides educational programs for children from six weeks to 12 years old. KinderCare is the third-largest privately held company headquartered in Oregon. [5] In 39 states and the District of Columbia, some 200,000 children are enrolled in more than 1,250 (as of 2023) [6] early childhood education community centers, [3] over 600 before-and-after school programs, [7] and over 100 employer-sponsored centers. In 2021, revenue was US$7.8B (2021). [8] In 2022, it acquired Crème de la Crème, a former competitor that provided complementary services. [9]

Contents

Company history

Founding

Perry Mendel, a real estate developer, founded KinderCare Nursery Schools after speculating that increasing numbers of women entering the workforce would increase demand for preschool child care. The first facility was opened on July 14, 1969 on Sunshine Drive in Montgomery, Alabama [10] accommodating 70 children. A second facility was opened in 1970, and the company changed its name to Kinder-Care Learning Centers, Inc. By 1971, 19 centers were in operation and the first infant care was offered. [10]

One of the company's schools in Philadelphia, PA KinderCare Learning Center (53572699193).jpg
One of the company's schools in Philadelphia, PA

The firm went public in 1972; by 1974, the company had 60 centers located in 17 states and over 500 employees nationwide. The company's first major acquisition came in 1977, when it purchased the 15 facilities of Playcare. In 1979, it acquired Mini-Skools, Living and Learning, and American Pre-Schools. In 1985, the company opened its 1,000th center.

In 1987, Kinder-Care stated it was expanding at the rate of one new center every three days. It also acquired Sylvan Learning Centers, a provider of supplemental instruction and tutoring.

In 1992, the company updated its bell tower logo and began to render the KinderCare name in camel case.

Bankruptcy

In the 1980s, Kinder-Care, like several public companies of the time, attempted a conglomeration business strategy to raise revenue, as its investors forced it to purchase completely unrelated companies such as American Savings for $188 million. [11] They also purchased photo studios, shoe stores and a foreign fertilizer manufacturer.

Chief Executive Grassgreen, informed by 'junk bond king' Michael Milken from the firm of Drexel Burnham Lambert, led the company on an ill-conceived diversification plan in the late 1980s. As a result, the company's debt load increased from $10 million to about $620 million in 1988. The company found itself in deep financial trouble after Black Monday crash of 1987.

During this period, Tull Gearreald, an investment banker, took command of the company as president and CEO. Caught in a cash squeeze in January 1991, Kinder-Care stopped paying interest on its debt. [12] Still faltering under its high debt load, KinderCare filed for Chapter 11 bankruptcy protection on November 10, 1992. The company continued operating, although, according to a 1988 Forbes article, less than half of Kinder-Care's sales and profits for the year were expected to come from its child care centers. In January 1993, in a move that helped their balance sheet, KinderCare sold off Sylvan Learning Centers for $8 million.

Post-2000 financial history

KinderCare was acquired in 2005 by the Knowledge Learning Corporation (KLC) division of Knowledge Universe. By coincidence, KU was privately founded and owned by Michael Milken since 1996, five years after his prison release. [13] The deal, valued at over US$1 billion, made KLC the nation's largest private childcare and education provider. [14]

In 2012, company revenues were $1.45 billion, down from $1.6 billion in 2010. [15] Revenue rose to UD7.8 billion in 2021. [8]

In July 2015, Partners Group, a Swiss enterprise, bought Knowledge Universe. [16] [17] Knowledge Universe renamed itself as KinderCare Education in January 2016. [18] The parent company, KinderCare Education, also operates Knowledge Beginnings, Children's Creative Learning Centers (CCLC), and Champions. [19] In 2022, it acquired Crème de la Crème, a former competitor that provided complementary services. [9]

COVID-19 response

During the 2020 coronavirus pandemic, KinderCare temporarily shut down 1100 of their approximately 1500 daycare centers, leaving the centers that have large proportions of first responders and healthcare workers. [1]

IPO Filing

In October 2021, The Oregonian reported that Kindercare confidentially filed for an IPO. The company then postponed citing regulatory delays. [20] [21]

Accreditation

The National Association for the Education of Young Children (NAEYC) and other associations have accredited over 700 KLC centers. [22] [ better source needed ]

Quality of care and education

Research in Maryland found that children who had attended KinderCare were more likely to be ready for school. [23]

The company has been criticized as being part of the "McDonaldization of society". [24] George Ritzer criticizes the company for "hir[ing] short-term employees with little or no experience in child care". [24]

The company has been the subject of legal challenges. In Roberts v. KinderCare Learning Centers, Inc. the judgment was found for KinderCare. [25] [26] In Jesi Stuthard and ADA v. Kindercare Learning Centers, Inc. judgment was against KinderCare. [27] [28]

See also

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References

  1. 1 2 3 Ted Sickinger (20 March 2020). "KinderCare to close 1,100 daycare centers, refocus 400 on first responders". Oregonlive . Retrieved 21 March 2020. KinderCare, the Portland-based operator of 1,500 daycare centers in 40 states, said it will temporarily shut more than two-thirds of its centers because of the coronavirus pandemic.It said it will refocus more than 400 centers to provide childcare for first responders, healthcare workers and families that work in essential services. It could reopen more depending on demand.The company employs about 36,000 teachers and serves 186,000 children every day. It did not say how many of those employees and children would be affected.
  2. ↑ "KinderCare Learning Centers LLC - Company Profile and News". Bloomberg.com. Retrieved 2023-03-04.
  3. 1 2 "15,000 BOOKS...TEN STATES...AND SEVEN COUNTRIES: KINDERCARE "READ.SHARE.GIVE" CAMPAIGN PROMOTES EARLY READING" (PDF). 22 September 2011. Archived from the original (PDF) on 28 May 2012.
  4. ↑ Linda Baker (27 January 2011). "Knowledge Universe reaches $1.6 billion in revenue". Oregon Business. Archived from the original on 15 October 2014.
  5. 1 2 Giegerich, Andy (January 6, 2016). "Why a $1.5B Portland powerhouse is changing its name". Portland Business Journal. Retrieved 22 January 2016.
  6. ↑ "Complete List of KinderCare Learning Centers Locations | AggData". www.aggdata.com. Retrieved 2023-03-04.
  7. ↑ "Before-and-After School Programs, Break-Time Camps For Winter, Spring and Summer - Champions". discoverchampions.com. Archived from the original on 2012-12-12.
  8. 1 2 "KinderCare Education Revenue: Annual, Quarterly, and Historic - Zippia". www.zippia.com. 2021-12-14. Retrieved 2023-03-04.
  9. 1 2 "KinderCare Acquires Creme de la Creme | Mergr M&A Deal Summary". mergr.com. Retrieved 2023-03-04.
  10. 1 2 "KinderCare Learning Centers, Inc. History". fundinguniverse.com.
  11. ↑ Tracy Kolody (30 April 1988). "Kinder-care Buys American Savings". Sun Sentinel. Archived from the original on October 19, 2014.
  12. ↑ "Can Kinder Care Put This Puzzle Together?". Business Week. 23 February 1992. Archived from the original on October 13, 2014.
  13. ↑ "Milken, KinderCare reunited". CNN Money. 6 November 2004.
  14. ↑ "Knowledge Learning to buy KinderCare in $1B-plus deal". San Francisco Business Times. 8 November 2004.
  15. ↑ Linda Baker (28 May 2013). "Expanding universe". Oregon Business. Archived from the original on 27 December 2014.
  16. ↑ Giegerich, Andy (July 9, 2015). "Oregon's third-largest private company sold to Swiss enterprise". Portland Business Journal. Retrieved 12 January 2016.
  17. ↑ Spencer, Malia (July 9, 2015). "Knowledge Universe CEO Tom Wyatt on why Partners is the perfect partner". Portland Business Journal. Retrieved 12 January 2016.
  18. ↑ Giegerich, Andy (January 6, 2016). "Oregon's 3rd-largest private company renames itself with its best-known brand". Portland Business Journal. Retrieved 12 January 2016.
  19. ↑ "KinderCare Learning Centers". KU. Archived from the original on 2014-11-22.
  20. ↑ "KinderCare Learning Companies, Inc. (KLC) Company Profile & Overview". Stock Analysis. Retrieved 2023-03-04.
  21. ↑ Oregonian/OregonLive, Jeff Manning | The (2021-12-10). "KinderCare abruptly postponed its IPO; the reasons remain a mystery". oregonlive. Retrieved 2022-03-29.
  22. ↑ "KinderCare Learning Centers Accreditation". KLC. Archived from the original on 2008-03-13.
  23. ↑ The Foundation for Success: Discussing Early Childhood Education and Care in America : Hearing Before the Committee on Education and the Workforce, U.S. House of Representatives, One Hundred Thirteenth Congress, Second Session, Hearing Held in Washington, DC, February 5, 2014. U.S. Government Publishing Office. 2015. Retrieved 24 January 2022.
  24. 1 2 Ritzer, George (2015). The McDonaldization of Society: 20th Anniversary Edition. ISBN   9781452226699 . Retrieved 24 January 2022.
  25. ↑ Rothstein, Laura; McGinley, Ann (2010). Disability Law: Cases, Materials, Problems. LexisNexis. ISBN   9780327174714 . Retrieved 24 January 2022.
  26. ↑ "ROBERTS RODENBERG ROBERTS v. KINDERCARE LEARNING CENTERS INC". FindLaw. United States Court of Appeals. 1996. Retrieved 24 January 2022.
  27. ↑ "KinderCare Settlement Agreement re: Diabetes Finger-Prick Tests". ADA.gov. Retrieved 24 January 2022.
  28. ↑ Breslin, Mary Lou; Yee, Sylvia (2021). Disability Rights Law and Policy: International and National Perspectives. BRILL. ISBN   9789004478961 . Retrieved 24 January 2022.
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