McGraw-Hill Companies Selling Division to Private Equity

The McGraw-Hill Companies have just agreed to sell their education division to a private equity firm, in a move that will certainly have repercussions in the educational publishing world. It has agreed to see the company to investment funds that are affiliated with Apollo Global Management. This is an international firm based in New York City. McGraw-Hill is selling for $2.5 billion.

They expect the deal to be completed in early 2013 and it will leave McGraw-Hill with its financial information properties with the name McGraw-Hill Financial.

Interestingly, McGraw-Hill only named a new CEO of the McGraw-Hill Education division six months ago. Lloyd Waterhouse will continue to lead the company even under the new ownership, while Harold McGraw III will be the CEO of McGraw-Hill Financial.

With this move, Apollo Global Management joins in with Pearson and Houghton Mifflin Harcourt (also a subsidiary of private equity) to be part of the large three educational publishers.