[ PW Home ] [ Bestsellers ] [ Subscribe ] [ Search ]

Publishers Weekly News

MHC to Acquire Tribune Education for $634 Million
Jim Milliot -- 7/3/00

The McGraw-Hill Co. strengthened its position in the educational market last week with the announcement that it has reached an agreement to acquire Tribune Education from the Tribune Co. Tribune's supplementary education business had sales of $339 million in 1999 and operating profits of $34 million. It was put up for sale this spring following Tribune's acquisition of Times Mirror, which will focus Tribune's efforts on newspaper publishing and broadcasting (News, Apr. 10). The deal is expected to close early in the third quarter.

MHC will pay $634.7 million in cash for Tribune Education, giving the deal a 1.9 times sales multiple. The five units acquired in the deal--the Wright Group, NTC/Contemporary Publishing, Everyday Learning/Creative Publications, Instructional Fair Group and Landoll Inc.--produce materials for the k-12, higher education, professional education and consumer markets.

MHC chairman Terry McGraw said Tribune Education "fits exceptionally well within our existing education business by providing complementary products and expansion opportunities at all levels of the education market." MHC's professional and educational publishing group had revenues of $1.73 billion in 1999; its educational segments generated revenues of $1.3 billion.

Bob Evanson, president of M-H Education, said that by integrating Tribune Education with its own operations, the company "expects to achieve significant operating efficiencies in purchasing, printing, distribution and operation services." The bulk of M-H's supplementary education products are currently part of SRA/McGraw-Hill, which is headquartered in Worthington, Ohio. It was unclear at press time last week whether MHC plans to consolidate the widely scattered Tribune Education facilities. It was also undecided where some of Tribune's more trade-oriented titles will be placed within the MHC operation.

Tribune entered the supplementary education market in 1994 and built the operation through a string of acquisitions. The company said that as a result of the sale, it will take an approximately $100-million one-time after-tax loss in the second quarter. Proceeds will be used to pay down debt.
Back To News
--->
Search | Bestsellers | News | Features | Children's Books | Bookselling
Interview | Industry Update | International | Classifieds | Authors On the Highway
About PW | Subscribe
Copyright 2000. Publishers Weekly. All rights reserved.