| Sept 1
Sept 1 McGraw-Hill Education is pressing ahead
with plans to go public and has hired underwriters to assist in
an initial public offering valuing the company between $5
billion and $6 billion, including debt, according to people
familiar with the matter.
The company's owner, private equity firm Apollo Global
Management LLC, has tapped Credit Suisse Group AG
and Morgan Stanley to lead the offering.
Representatives of McGraw-Hill Education, Apollo, Credit
Suisse and Morgan Stanley declined to comment.
McGraw-Hill Education expects to launch the IPO at the end
of the year, following the end of back-to-school season, when it
generates the bulk of its revenue through textbook sales,
Reuters has previously reported.
New York-based McGraw-Hill Education is one of the largest
educational publishers in the world, selling textbooks for
school and university students and professionals in about 60
languages. It competes with Pearson Plc and Cengage
Learning Inc, and, like its peers, has sought to make most of
its content available on the Internet as more people read on
their tablets and phones.
Apollo acquired the business from McGraw-Hill Companies in
March 2013 for $2.4 billion. Since then, Apollo has increased
the company's profits, cut costs and expanded its digital
Last year, McGraw-Hill Education generated $321 million in
earnings before interest, taxes, depreciation and amortization
on revenue of $1.3 billion. Apollo has also had the company
borrow to pay it hefty dividends, recouping its $1 billion
equity investment. The company has $1.5 billion in debt as a
Shares of another educational publisher, Houghton Mifflin
Harcourt Co, have performed well since it went public
in November 2013 after emerging from bankruptcy.
(Reporting by Liana B. Baker and Greg Roumeliotis; Editing by