McGraw-Hill to sell education business to Apollo for $2.5 billion — from gilfuseducationgroup.com
Excerpt:
McGraw-Hill’s education print revenues have been rapidly declining while the company has had great difficulties and political infighting about evolving to digital products and services. Essentially the education division needs a “change of control” to help get its act together. Can a change of control help?
The McGraw-Hill Companies (NYSE: MHP) (“the Company”) today announced it has signed a definitive agreement to sell its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC (NYSE: APO) (collectively with its subsidiaries, “Apollo”), for a purchase price of $2.5 billion, subject to certain closing adjustments. As part of this transaction, McGraw-Hill will receive $250 million in senior unsecured notes issued by the purchaser at an annual interest rate of 8.5%. The transaction, which is expected to close in late 2012 or early 2013, is subject to regulatory approval and customary closing conditions.