McGraw-Hill Cos. has agreed to sell its education unit to Apollo Global Management for $2.5 billion, according to news reports. McGraw-Hill had tried unsuccessfully to spin off the unit from its financial-services business and take the education company public.
The
Financial Times
noted
that McGraw-Hill, which has been in the education business for nearly a century, had hoped to receive $3 billion for McGraw-Hill Education.
After the sale closes in late 2012 or early 2013, McGraw-Hill plans to change its name to McGraw-Hill Financial. Harold McGraw III, McGraw-Hill’s current chairman, president and CEO, will head the company,
an Associated Press report said.
The company plans to use the proceeds from the sale of the education unit to sustain its share repurchase program, make acquisitions and pay off debt, according to
Business First.
(Sources:
Financial Times,
Nov. 26, 2012; Associated Press, Nov. 26, 2012;
Business First,
Nov. 26, 2012.)
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