Apollo Global Is Said to Weigh Sale of McGraw-Hill Education

Apollo Global Management  (APO) – Get Report is considering the sale of McGraw-Hill Education in a deal that would value the educational publisher at $5 billion to $6 billion including debt. 

Individuals familiar with the matter told Bloomberg News that the New York private-equity giant is interested in striking a deal with PE firms and may also consider an agreement with a special purpose acquisition company.

Apollo declined to comment to the news service. McGraw-Hill Education, New York, and its financial advisers, Macquarie Group and Bank of Montreal, were unavailable for comment to Bloomberg.

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McGraw-Hill Education annually posts $450 million of earnings before interest, taxes, depreciation and amortization, the sources said.

Digital sources make up about $300 million, or two-thirds, of the brand’s earnings, as the New York education company has updated its options to include “electronic textbooks and virtual learning, they added.

If Apollo does pursue a sale, McGraw-Hill Education could bring $5 billion and $6 billion including debt. The PE giant also could choose to keep the company, the sources said.

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