Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

http://www.businessweek.com/news/2013-03-22/mcgraw-hill-closes-2-dot-4-billion-education-unit-sale-to-apollo

Bloomberg News

McGraw-Hill Closes $2.4 Billion Education Unit Sale to Apollo

March 22, 2013

McGraw-Hill Cos. completed the sale of its education unit to Apollo Global Management LLC (APO:US) for $2.4 billion in cash.

Some of the proceeds from the transaction will fund share buybacks, the New York-based firm said in a statement today distributed by PRNewswire. The remaining company, to be renamed McGraw Hill Financial Inc., is also using part of the $1.9 billion it will receive after tax to pay down short-term debt and the rest may pay for “selective tuck-in acquisitions,” according to the statement.

Chief Executive Officer Harold “Terry” McGraw III decided in September 2011 to sell the education division, which his great-grandfather started 125 years ago, after pressure from Jana Partners LLC, a New York-based hedge fund, and the Ontario Teachers’ Pension Plan.

The U.S. Department of Justice sued the company Feb. 4, alleging that its Standard & Poor’s ratings unit inflated grades to win business from Wall Street banks. S&P will be at the center of the new company, accounting for about half its revenue, according to data (MHP:US) compiled by Bloomberg.

To contact the reporter on this story: Matt Robinson in New York at mrobinson55@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus