The Career Education Corporation has struck a deal to sell its European operations to Apax Partners, a private-equity group, for $267-million in cash, the higher-education company announced on Thursday.
The sale includes a chain of business, communications, and health-care colleges based in Paris, the Inseec Group, that Career Education bought 10 years ago for about $20-million. It also includes the International University of Monaco, which it acquired in 2010 for $6.3-million.
Career Education had reported that enrollment at its international locations, all of which are part of this sale, was about 11,400. The company said it would use the sale proceeds to accelerate growth in the United States. The company has been struggling with falling enrollments and in August agreed to pay $10-million to New York State to settle a complaint about its misrepresentation of job-placement rates.
The European operations of Career Education reported revenue of $128.6-million in 2012, representing approximately 9 percent of the company’s consolidated revenue.
As noted by Reuters, the sale price was higher than Career Education’s total market value at the close of trading on Thursday, although news of the sale sent the stock price up in after-hours trading.Return to Top