| Notes |
In 1987, Kinder-Care was reporting annual revenues of $900 million, and analysts were remarking on the company's rapid growth, observing that stock had soared from 12 cents a share to $20 at its high in mid-1987. Management Review magazine stated in a 1988 article that the investment community watched a $100 investment in the company's stock in 1972 grow into $7,000 in 1987. In fact, during this time, Kinder-Care was expanding at the rate of one new center every three days.
This trend was soon to sour, however, as Mendel and Grassgreen begun widening the scope of their plans for the company. Years before, the men had been approached by Michael Milken, an investor from the firm of Drexel Burnham Lambert, who suggested that the company begin diversifying its equity and building an investment portfolio. Toward that end, Kinder-Care acquired a wide variety of companies in the 1980s, including chains of photo studios, shoe stores, other retail operations, and two savings and loan associations. Late in 1987, Kinder-Care acquired Sylvan Learning Centers, a provider of supplemental instruction to children and adults, and the largest franchiser of its kind. The company also made a $10 million investment in Trans-Resources Inc., an Israel-based chemical and fertilizer manufacturer. |