Apollo Buys McGraw-Hill Textbook Unit

Nov 27 2012 | 11:40am ET

McGraw-Hill Cos. yesterday announced that it would sell its educational publishing unit to Apollo Global Management for $2.5 billion.

The deal for the underperforming unit is expected to close later this year or early next year. In addition to McGraw-Hill's textbook business, which includes a digital unit, Apollo will receive other assets.

Apollo will pay McGraw-Hill, which will be renamed McGraw Hill Financial, in cash and debt, including $250 million in Apollo bonds. McGraw-Hill, which owns Standard & Poor's, said it will use the proceeds from the sale, which it estimated at $1.9 billion, to pay for its stock buyback program, pay off debt and make acquisitions.

"With a longstanding track record of investing behind leaders in education, Apollo is pleased to be acquiring a marquee business that has been a pioneer in educational innovation and excellence for over a century," Apollo senior partner Larry Berg said. "McGraw-Hill Education has a deep and impassioned management team, and we share their enthusiasm and strategic vision for the business. We look forward to leveraging the company's leading portfolio of trusted brands and innovative digital learning solutions to drive growth through the ongoing convergence of education and technology on a global basis."

McGraw-Hill has been under pressure to split for years; one of its most strident critics has been Jana Partners, which wants the company cut into four parts, rather than two.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.