Private equity firm Quad-C Management acquired Rainbow Early Education Holding LLC from Spire Capital Partners. According to Spire Capital, the transaction closed in June. Terms of the deal were not disclosed.
Rainbow, based in Troy, Michigan, provides early education services to more than 10,500 students, with 121 schools and before/after school programs in 12 states in the Midwest, Mid-Atlantic and Southeast U.S. The company was formed in 2010—when Spire acquired it-- with the merger of Rainbow Child Development, Little Pro's Academy Holdings and Mayberry Learning Center. Rainbow receives more than 90 percent of its revenue from private pay tuition. Rainbow’s customers are primarily from the communities near its schools, but it also provides corporate early education services to Chrysler, Ford, Whirlpool, Zimmer, GM, IBM, Bank of America, Fidelity, hospitals, universities other clients. Under Spire’s ownership, Rainbow opened or acquired 91 schools, more than tripling the school count while growing revenue by more than 400 percent, according to Spire.