Is education the growth market of the future, asks Karen Harverson
Some 60 percent of the Midrand Campus Group, a privately-run learning centre specialising in undergraduate and postgraduate courses, has been bought by listed company, the Housewares Group in a deal worth more than R16-million.
The group, through its mail order subsidiary Glomail, first became involved a few months ago when it undertook a joint venture with Midrand Campus to distribute and market material for its distance learning division.
“We realised that education is going to be a major growth market in South Africa and decided to invest in the business,” says Housewares managing director Hilton Kramer.
He says the deal was struck on condition the original shareholders, two of which started up the highly successful Eden College centres, retained 40 percent of the shareholding. “The existing management team will continue to run the day-to-day operations of the group while Housewares will contribute its marketing, distribution and systems expertise.”
Director of studies at Midrand Campus, Mark Rohald says with its new major shareholder, the centre now has the financial backing to expand nationwide.
Rohald reports that the centre has grown from 234 students when it was first set up in 1989 to more than 3 500 this year at its various divisions. He believes numbers will rise to more than 10 000 in 1996 as privately funded institutions gain popularity.
Housewares director Russel Orelowitz says privately funded education centres are becoming a world trend.