Publisher McGraw-Hill (NYSE:MHP) settled on a deal Monday to sell its educational division for $2.5 billion to private equity firm Apollo Global Management (NYSE:APO).
The deal allows the publisher to concentrate on its financial intelligence business, reports The New York Times. McGraw-Hill will be renamed McGraw Hill Financial following the sale. The firm holds Standard & Poor’s, as well as the S&P and Dow Jones indices, along with other interests.
McGraw-Hill purchased the educational division back in 1952 and it has long been the most well-known of the firm’s units. However, it became expendable as the growth of MHP’s financial interests began to dominate its growth.
The transaction is expected to be finalized by the end of this year. McGraw-Hill will take a charge of between $450 million and $550 million when the deal is completed.
Apollo Global Management is a private equity firm based in New York City; it also has holdings in AMC Entertainment and Norwegian Cruise Lines, among others.
MHP shares were up more than 1% by midday Monday, while APO was fractionally lower.
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