School and childcare centre supplier in play.

 

Private equity-owned Modern Star, a leading school and childcare centre supplies provider, is currently the subject of a $500 million debt refinancing deal.

 

Pacific Equity Partners paid $600 million for Modern Star in 2020. 

 

The new debt package will lower Modern Star’s borrowing costs, while leaving room to invest in the business.

 

It will also fund a small dividend recapitalisation, spelling a mini payday for PEP’s partners that backed the acquisition six years’ ago. 

 

From humble beginnings in 1956, the Modern Star Group has grown into Australia’s leading partner and supplier of educational resources to early childhood centres and primary schools.

 

In 2025, the group reported revenue of $370 million.

 

Modern Star’s portfolio of brands servicing the teaching community in Australia and New Zealand include Modern Teaching Aids, Zart, Kesco, and CleverPatch.