Career Education Corporation (NASDAQ: CECO), a global provider of postsecondary education programs and services, today announced it has reached a definitive agreement to sell and transfer control of its European education properties to private equity firm Apax Partners. Total consideration is expected to be $305 million, less certain distributions and adjustments prior to closing, including the distribution to the company of approximately $18 million from certain subsidiaries within the International segment. Career Education anticipates receiving a cash payment of $276.5 million at closing.
Career Education’s entire International schools segment, comprised of the Paris-based INSEEC Group and the International University of Monaco, which provide career-oriented education programs in various disciplines, including business studies, health education, advertising, communications and technology, is included in this transaction.
“Redeploying capital from Europe to the United States is the right move for Career Education. It will help us best serve the vast majority of our students, who are U.S.-based, and return the best value for our investors. The cash from the transaction will improve our options for accelerating future growth,” said Scott W. Steffey, president and CEO of Career Education. “This transaction is a key step in our restructuring efforts.”
The European operations of Career Education reported revenue of $128.6 million in 2012, representing approximately 9 percent of the company’s consolidated revenue.
“These European education operations have shown steady growth in enrollment over several years. INSEEC is led by a strong management team with a bright future. This transaction allows Career Education to realize substantial value, while providing Apax Partners with significant education properties for their portfolio,” Steffey said. “It is a smart transaction for Apax Partners and for Career Education. I’m also pleased that Career Education and Apax Partners have agreed to cooperate, mutually discuss and explore possible joint opportunities for international investments in the education sector in the future.”