Schaumburg's Career Education to sell European schools
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Schaumburg-based Career Education Corporation announced Thursday that it is selling its European education segments in Paris and Monaco to a private equity firm.
The price of the sale to Apax Partners 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, according to a company release.
Career Education, a for-profit education provider, 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.
Career Education expects the transaction will close before the end of the year, pending customary provisions, including review by French antitrust authorities.
The Schaumburg company announced last year at this time that it is cutting 900 jobs and closing 23 campuses as it continues to battle with declining enrollment.
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