Corinthian Colleges Buys Heald Colleges For $395M

SANTA ANA, Calif. (AP) — Corinthian Colleges Inc., a for-profit provider of higher education, said on Tuesday that it was buying Heald Capital LLC, the parent of the Heald Colleges, for $395 million in cash.

Corinthian will assume an unspecified amount of Heald's debt, which is already included in the purchase price. It plans to finance the purchase, which is subject to regulatory approvals, through a $280 million credit facility and cash. The transaction is expected to close by March 31, 2010.

Heald operates 11 campuses with about 12,300 students. Nine of the schools are in Northern California. The company primarily offers associate's degrees in the healthcare, business and information technology fields. Palm Ventures, a Greenwich, Conn., venture capital firm which invests in education companies and other sectors, is Heald's controlling shareholder.

Heald's ownership structure entitles Corinthian to future tax benefits of about $70 million, the company said.

Corinthian said purchasing Heald will add slightly to revenue in the second half of the 2010 fiscal year, and contribute between 15 cents and 20 cents in earnings per share in fiscal 2011.