Braeburn to absorb 175 staff of Hillcrest School in buyout deal
Braeburn School located along Argwings Kodhek road in Nairobi. Braeburn Schools Limited is set to acquire Hillcrest International
The Competition Authority of Kenya (CAK) has given conditional approval to a January deal that saw Braeburn Schools Limited sign transfer papers to acquire Hillcrest International.
CAK Director-General Wang’ombe Kariuki said the buyout transaction had been approved on condition that Braeburn absorbs 175 out of the 180 staff of Hillcrest.
“Pursuant to section 46 (6) of the Act(Competition Act), we wish to notify you that the authority has approved the implementation of the proposed merger on condition that the acquirer offers to employ at least one hundred and seventy- five (175) of the target's one hundred and eighty (180) employees on terms that are no less favourable than their current terms of employment with the target,” he said in a gazette notice.
Following the competition watchdog’s approval, Hillcrest, which was once owned by the late vibrant multiparty crusader Kenneth Matiba, will commence the transfer of assets for Braeburn’s eventual takeover. This marks Hillcrest’s third change of ownership in 11 years.
The two high-end schools said they reached the transfer deal in principle on January 20 this year, paving the way for the transaction by the start of the third term of the 2021/22 academic year.
Financial details about the deal have remained scanty.
Braeburn intends to continue operating the Hillcrest Schools under the Hillcrest brand name, promising the stakeholders a smooth transition.
“We at Braeburn are very excited at the prospect of adding the Hillcrest Schools to the Braeburn Group. Students, parents, and staff can look forward to a smooth transition and a progressive world-class international school,” said Braeburn in a January statement after inking the deal.
Hillcrest’s sale comes just three years after it was acquired by Dubai-based GEMS Education in a Sh2.6 billion deal that saw it added to the Nairobi-based GEMS Cambridge International School.
GEMS Education had earlier acquired the institution from private equity firm Fanisi Capital who had in turn bought it from the family of the late firebrand politician Kenneth Matiba. Matiba had held Hillcrest for 37 years after purchasing it in the 1960s soon after it was founded.
The new sale will see Braeburn evaluate Hillcrest’s operations to develop a long-term strategy, a move that signals a review of the teaching and support staff members at the institution.
Braeburn currently operates nine campuses under the Braeburn and Braeside brands in Kenya and neighbouring Tanzania.
In Kenya, Braeburn has campuses in Nanyuki, Thika, Kisumu, Mombasa, Nairobi, and Lavington while in Tanzania, the school chain has its campus in Arusha.
