McGraw-Hill to spin off education unit for $3 billion
NEW YORK (AFP) - McGraw-Hill said on Monday it agreed to sell its education unit for US$2.5 billion, allowing the group to focus on financial operations including its Standard & Poor's brand.
The deal calls for McGraw-Hill Education, which produces textbooks and digital educational materials, to be sold to investors led by Apollo Global Management, in a sale expected to close in late 2012 or early 2013.
After closing, McGraw-Hill will be renamed McGraw Hill Financial, and will concentrate on its brands including Standard & Poor's, S&P Dow Jones Indices, S&P Capital IQ, Platts and JD Power and Associates.
"Today's transaction marks a transformative time for our company, shareholders, customers and employees," said Harold McGraw III, chairman and chief executive of The McGraw-Hill Companies.