McGraw-Hill completes sale of education unit to Apollo
New York—McGraw-Hill Cos. today completed the sale of its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management. The previously announced purchase price was $2.4 billion in cash.
McGraw-Hill Cos., which will serve the global capital and commodity markets, will be renamed McGraw Hill Financial, subject to shareholder approval, in the second quarter of this year.
The company said it is using a portion of the approximately $1.9 billion in after-tax proceeds from the sale of the education unit to pay down short-term debt, resume share repurchases and make selective acquisitions.
“Consistent with our commitment to maximizing shareholder value, McGraw Hill Financial expects to continue to return cash to shareholders and to invest for growth,” Harold McGraw III, chairman and president-CEO of McGraw-Hill Cos., said in a statement. “We have successfully completed our Growth and Value Plan, which had as its cornerstone the separation of our financial information and education businesses.”