Based in 1888, McGraw Hill supplies outcome-focused studying options to hundreds of thousands of scholars globally, delivering each curated content material and digital studying instruments and platforms to the lecture rooms of roughly 250,000 greater schooling instructors, 13,000 pre-kindergarten by twelfth grade faculty districts, and all kinds of educational establishments, professionals and corporations. Its merchandise are distributed in additional than 100 nations throughout the Americas, Asia-Pacific, Europe, India and the Center East.
“We consider in McGraw Hill’s mission to create a brighter future for learners of all ages all over the world,” mentioned Platinum Fairness founder and CEO Tom Gores. “The pandemic has been particularly disruptive to schooling, and investing in modern options, and digital studying instruments specifically, is extra vital than ever. We’re excited concerning the alternative to place our operational and monetary sources to work on behalf of scholars and lecturers in every single place.”
“McGraw Hill is a trusted model that has been delivering best-in-class content material to the schooling sector for greater than 130 years,” mentioned Platinum Fairness Accomplice Jacob Kotzubei. “The corporate has a seasoned administration group with deep business expertise. We stay up for partnering with McGraw Hill CEO Simon Allen to assist the corporate’s continued development and innovation.”
In the present day, McGraw Hill generates greater than $1 billion a yr in income from digital merchandise and has grown digital as a share of income from lower than 25% in 2013, on the time of the Apollo Funds’ acquisition, to greater than 60% at the moment and over 80% in its Larger Schooling enterprise. Since 2013, McGraw Hill accomplished six digitally centered acquisitions and reworked the enterprise to drive digital development, greater recurring revenues and margin growth.
“The management and workers of McGraw Hill have demonstrated large agility and innovation in remodeling the corporate from a print-centric group to at least one that at the moment supplies participating, intuitive and efficient digital merchandise that assist drive scholar success,” mentioned Larry Berg, Senior Accomplice in Non-public Fairness at Apollo and Chairman of the Board of McGraw Hill.
“We now have nice admiration for McGraw Hill’s administration and workers across the globe and are proud to have supported the transformation of McGraw Hill into a frontrunner within the schooling sector with a digital-first method,” mentioned Apollo’s Itai Wallach. “We consider McGraw Hill could be very effectively positioned for its subsequent section of development.”
McGraw Hill CEO Simon Allen and his senior management group will proceed to steer the enterprise beneath Platinum’s possession.
“Our firm has extraordinary strengths – one of the best expertise, expertise and content material within the business, a deeply trusted model and an unwavering dedication to educators and college students to assist them thrive,” mentioned Mr. Allen. “Working with Apollo, we now have reworked our enterprise. Now, with Platinum’s sources and experience, we might be positioned to speed up our digital development and to proceed to prepared the ground as a trusted schooling accomplice throughout a dynamic time for the business. I stay up for working with the Platinum group to construct our enterprise in a approach that may profit our clients, our workers and our traders.”
“McGraw Hill is a extremely scalable enterprise with substantial alternatives for extra growth,” mentioned Platinum Fairness Managing Director Luke Myers. “We are going to proceed investing within the firm’s current academic choices whereas pursuing new avenues for development each organically and thru potential strategic acquisitions.”
The sale is anticipated to be accomplished this summer time, topic to customary closing situations and regulatory approval.
Gibson, Dunn & Crutcher LLP is serving as authorized advisor to Platinum Fairness on the acquisition of McGraw Hill and Willkie Farr is offering financing counsel to Platinum Fairness on the transaction. BofA Securities is the lead underwriter for the debt financing. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as authorized counsel to McGraw Hill and the Apollo Funds, and Macquarie Capital and BMO Capital Markets Corp. are serving as monetary advisors to McGraw Hill.
About Platinum Fairness
Based in 1995 by Tom Gores, Platinum Fairness is a worldwide funding agency with greater than $25 billion of property beneath administration and a portfolio of roughly 40 working firms that serve clients all over the world. The agency is at present investing from Platinum Fairness Capital Companions V, a $10 billion international buyout fund, and Platinum Fairness Small Cap fund, a $1.5 billion buyout fund centered on funding alternatives within the decrease center market. Platinum Fairness makes a speciality of mergers, acquisitions and operations – a trademarked technique it calls M&A&O® – buying and working firms in a broad vary of enterprise markets, together with manufacturing, distribution, transportation and logistics, tools rental, metals providers, media and leisure expertise, telecommunications and different industries. Over the previous 25 years Platinum Fairness has accomplished greater than 300 acquisitions.
Apollo is a high-growth, international different asset supervisor. We search to supply our shoppers extra return at each level alongside the risk-reward spectrum from funding grade to non-public fairness with a give attention to three enterprise methods: yield, hybrid and opportunistic. By our funding exercise throughout our absolutely built-in platform, we serve the retirement earnings and monetary return wants of our shoppers, and we provide modern capital options to companies. Our affected person, artistic, educated method to investing aligns our shoppers, companies we put money into, our workers and the communities we influence, to increase alternative and obtain optimistic outcomes. As of March 31, 2021, Apollo had roughly $461 billion of property beneath administration. To be taught extra, please go to www.apollo.com.
About McGraw Hill
McGraw Hill is a studying science firm that delivers customized studying experiences that drive outcomes for college kids, dad and mom, educators and professionals. We give attention to academic fairness, affordability and studying success to assist learners construct higher lives. Headquartered in New York Metropolis, McGraw Hill has workplaces throughout North America, Asia, Australia, Europe, the Center East and South America, and makes its studying options for PreK–12, greater schooling, professionals and others out there in additional than 80 languages. Go to us at mheducation.com or discover us on Facebook, Instagram, LinkedIn, or Twitter.
Apollo International Administration, Inc.
SOURCE Platinum Fairness