Focusing on global capital and commodity markets, publishing giant McGraw-Hill (NYSE:SPGI) completed the sale of its education business to Apollo Global Management (NYSE:APO) for $2.4 billion, it announced last week, and will seek shareholder approval to change its name to McGraw Hill Financial to reflect the new outlook.
It owns iconic brands and leading franchises such as Standard & Poor’s, S&P Dow Jones Indices, S&P Capital IQ, Platts, and J.D. Power and Associates.
McGraw-Hill said in September 2011 that after a year-long strategic portfolio review it would separate into two companies yet subsequently was able to attract a bid from Apollo for the education business.
It plans to use a portion of the approximately $1.9 billion in after-tax proceeds from the sale to pay down short-term debt that was driven in part by a special dividend paid in 2012. The publisher said it will also resume share repurchases and will make selective tuck-in acquisitions.
Harold McGraw III, the company's chairman, president, and CEO, was quoted as saying, "The steps we have taken have unlocked value for shareholders, positioned the assets of McGraw-Hill Education for long-term success, and accelerated the growth potential of the new McGraw Hill Financial."
McGraw-Hill said in February it expected 2013 revenues to grow in the high single-digit range while adjusted EPS will increase 15% to $3.10 to $3.20 per share.