OneSmart International Education Group Limited (NYSE: ONE) (“OneSmart" or the "Company”), a leading diversified premium K-12 after-school education service provider in China, announced that it has attracted a new round of investment and has launched an expansion program to meet growing demand for its services across the country. China’s expanding education industry, propelled by an increase in spending on children’s education and the overall expansion of wealth within the country, have contributed to OneSmart’s robust growth in recent years. These latest developments will help the Company capitalize further on these trends.
In April this year, Carlyle Asia Partners IV, a fund affiliated with the global investment firm The Carlyle Group (“Carlyle”) increased its stake in OneSmart. According to the latest Schedule 13D filed on May 3, 2019 with the SEC, Carlyle acquired, through secondary transfers, 7.86 million American Depositary Shares of the Company. Combined with its existing holdings, Carlyle now owns an aggregate of approximately 18% of the outstanding shares of the Company, making it the second largest shareholder.
Nina Gong, Managing Director of Carlyle’s Asia Buyout advisory team, said, “We believe that, equipped with its leading brand and premium service offerings for K-12 students, OneSmart is well positioned to seize additional expansion opportunities in China’s rapidly growing education market.”
In addition, at the end of April, OneSmart signed a “City Partnership” agreement with Juren to invest in and launch campuses with local partners in Tier-2 and Tier-3 cities. Both parties will support the local partners with everything from teaching and student enrollment, to operations and technology.
Mr. Steve Xi Zhang, Chairman and Chief Executive Officer of OneSmart, said, “We are looking forward to working with Juren as we look to develop relationships with up to 300 local partners in the next two to three years. By combining the OneSmart and Juren brands at the local level, we believe we can more rapidly accelerate growth in Tier-2 and Tier-3 cities and provide children with more qualified and balanced educational resources.”
Lastly, OneSmart also announced that in April its board of directors authorized a second share repurchase program of up to US$50.0 million over the next 12 months.