Career Education to Sell Some Schools

The divesture will include te sale of the nine campuses that make up the Katharine Gibbs Schools.
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Shares of

Career Education Corp.

(CECO) - Get Report

got a boost Wednesday after the postsecondary education company announced plans to sell several of its schools and campuses.

The Hoffman Estates, Ill., company will divest the nine campuses that comprise its Gibbs division; McIntosh College; the two campuses belonging to Brooks College (Long Beach and Sunnyvale) and Lehigh Valley College.

"As Career Education positions itself for the future, we will be better targeting our business strategy and concentrating our resources on those areas where we have the greatest competitive advantage, the highest levels of expertise, and proven success," said Bob Dowdell, the company's interim CEO.

The company said it will continue to invest in the schools throughout the divestiture process, including strengthening educational programming and services to students, and continuing its support of faculty and staff.

Shares were higher by $2.40, or 10%, at $26.52 in recent trading Wednesday.