Summary
S&P Global Inc. (then known as The McGraw-Hill Companies, Inc.) filed an 8-K on March 26, 2013, to report the completion of the sale of its McGraw-Hill Education business to MHE Acquisition, LLC, an entity managed by Apollo Global Management, LLC. The transaction, valued at approximately $2.4 billion in cash, signifies a major strategic shift for the company, focusing its future operations on its financial information and capital markets businesses, which it intended to rebrand as McGraw Hill Financial. The company announced plans to utilize a significant portion of the after-tax proceeds (approximately $1.9 billion) to reduce short-term debt, resume share repurchases, and pursue strategic acquisitions. This strategic divestiture is framed as the culmination of a "Growth and Value Plan" aimed at unlocking shareholder value and enhancing the growth prospects of the remaining financial services segments. Additionally, the filing disclosed minor bonus payouts to executive officers tied to the sale's completion and the initiation of a $500 million accelerated share repurchase program.
Key Highlights
- 1Completion of the sale of McGraw-Hill Education business for approximately $2.4 billion in cash.
- 2Proceeds of approximately $1.9 billion (after-tax) to be used for debt reduction, share repurchases, and acquisitions.
- 3Company intends to rebrand as McGraw Hill Financial, focusing on capital and commodity markets.
- 4Initiation of a $500 million Accelerated Share Repurchase (ASR) transaction to return capital to shareholders.
- 5ASR transaction resumes the company's previously authorized 50 million share repurchase program.
- 6Minor bonus payments were made to three named executive officers upon the completion of the sale.