McGraw-Hill sells Education Unit for $2.5 Billion

McGraw-Hill (MHP) will not be spinning-off its educational unit, but instead it will sell it to Apollo for $2.5 billion.

“The Company will use the estimated proceeds of approximately $1.9 billion, net of tax and certain closing adjustments, from this sale to sustain its share repurchase program, to make selective tuck-in acquisitions that enhance McGraw Hill Financial’s portfolio of powerful brands, and to pay off any short-term borrowing obligations.”

“McGraw Hill Financial expects 2012 revenue of approximately $4.4 billion with nearly 40% from international markets.  The Company will provide 2013 financial guidance for McGraw Hill Financial when it announces its 2012 fourth quarter and year-end financial results.”

Here is the press release.

Disclosure: I do now own MHP.

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