McGraw-Hill to sell Education unit to Apollo Global Management for $2.5 billion
New York—McGraw-Hill Cos. has signed a definitive agreement to sell its McGraw-Hill Education business to Apollo Global Management for $2.5 billion.
The transaction, which is expected to close this year or in early 2013, is subject to regulatory approval.
Upon closing, McGraw-Hill will be renamed McGraw Hill Financial and will focus on covering the global capital and commodities markets. The company expects McGraw Hill Financial will produce 2012 revenue of approximately $4.4 billion, with almost 40% of that from international markets.
“After carefully considering all of the options for creating shareholder value, the McGraw-Hill board of directors concluded that this agreement generates the best value and certainty for our shareholders and will most favorably position the world-class assets of McGraw-Hill Education for long-term success,” said Harold McGraw III, chairman and president-CEO of McGraw-Hill Cos., in a statement. He will lead McGraw Hill Financial once the transaction is complete.