The R.E.A.L. deal for a leading specialist education provider

Mansfield-headquartered R.E.A.L. Education Limited (“R.E.A.L.”), a leading provider of special education services in the East Midlands, has been sold to The Aurora Group, backed by Octopus, in a significant deal in the sector, which was initiated and managed by PKF Smith Cooper.

R.E.A.L. is a leading provider of independent school placements, vocational provision and alternative provision for young people aged 7-19 with special educational needs and disabilities (SEND), who are unable to access mainstream education. It has developed an unparalleled vocational provision offering, blending industry expertise with education to equip learners with practical skills and qualifications, preparing them for life after education.

Founded in 2008, R.E.A.L. has developed an outstanding reputation for its innovative approach to educating young people often excluded from education, and in doing so, helping local authorities to meet critical demand for these services. Since its inception, it has grown significantly, now operating from 17 sites across the East Midlands, which include independent schools, learning hubs and highly specialised vocational provision centres.

The deal follows a decision by the shareholders to transfer R.E.A.L. to new owners. This decision was made after a long period of careful consideration, with the young people supported by R.E.A.L. and the amazing staff team at the forefront of the shareholders’ minds.

The corporate finance division of PKF Smith Cooper was appointed to provide pre-sale strategic advice, identify buyers, discretely market the business, negotiate on behalf of the sellers, and manage the deal through to completion.

The transaction was led by Corporate Finance Director David Crump, who was supported by Assistant Manager Callum Leslie. Natasha Scott, Tax Advisory Partner and Gavin West, Indirect Tax Partner, provided tax advice, whilst Sarah Flear, Audit and Business Services Partner and Head of the Education team, delivered accounting support.

Richard Smith, co-founder of R.E.A.L. commented: “Finding a buyer who shares our deep commitment to the people we support and employ was crucial to us, and we are glad to have found it in The Aurora Group, an organisation that shares our values, commitment to excellence, and belief in the strength of our team. Their vision aligns with ours and we are confident that this transition will bring new opportunities for growth and continued success.

“The professional advice and support we received from David, Martyn and their respective teams at PKF Smith Cooper and Flint Bishop was vital in successfully completing this deal and ensuring that our vision for the future was realised.” 

The Aurora Group is one of the largest providers of specialist education and care services in the country, supporting over 1,200 children and young people, and are the only B Corp accredited provider in the sector. The acquisition follows The Aurora Group’s expansion into the East Midlands, with Aurora Ryefields School opening soon in Derby, and underlines its commitment to growth in the region.

Dan Slater, Strategy Director of The Aurora Group, said: “This is great news for the staff, students and families of R.E.A.L. Education. There are many benefits to being part of Aurora, including opportunities for staff to extend their knowledge and progress their careers, and further investment in facilities for students.”  

Mark Costello, Chief Executive Officer of The Aurora Group, said: “We’re delighted to welcome everyone at R.E.A.L. Education to Aurora. We will work with staff, students and families to build upon R.E.A.L. Education’s success, providing unique educational opportunities to those that need them the most.”  

David Crump, Corporate Finance Director at PKF Smith Cooper, commented: “We are delighted to have assisted in securing a bright future for R.E.A.L.. The work it does and the opportunities it provides for young people are truly excellent, and we are delighted to have advised on the sale of the business to The Aurora Group who share the same passion and care. I look forward to seeing the expansion going forward, and I wish the teams at R.E.A.L. and Aurora every success for the future.”

Flint Bishop provided comprehensive legal advice to the sellers through a team led by Martyn Brierley, Partner and Head of Corporate. He was supported by Corporate Solicitor George Ottewell, Partner & Head of Commercial Property Janet Rhodes, Commercial Property Trainee Solicitor Jess Ryan-Dawkins, and Employment Solicitor Joseph Weston. Meanwhile, Glyn Abba of EFM offered financial management services to complement the legal support.

Martyn Brierley commented: “Having supported R.E.A.L. for over 10 years now across various transactions, it’s fantastic to have witnessed first-hand how our clients and the excellent team at R.E.A.L.  have grown the business to what it is today. Centred on Trust, Innovation and Achievement, which align perfectly with Aurora’s values, I’m really excited to see R.E.A.L., its staff and the young people it supports, continue to flourish under Aurora’s excellent stewardship, and I wish our clients, Aurora and all the team at R.E.A.L.  Education, all the very best for the future.”

The Aurora Group was advised on the acquisition by Midlands-based teams at PwC and Shoosmiths. Ashurst provided additional legal support, and Womble Bond Dickinson advised Barclays who provided debt funding for the transaction, alongside equity provider Octopus Group. Meanwhile, Nelsons advised a former shareholder of R.E.A.L..