McGraw-Hill Companies To Acquire Tribune Education

Posted on June 26, 2000

The McGraw-Hill Companies has announced that it has signed an agreement to acquire Tribune Education, a leading publisher of supplementary educational materials for the K-12, higher education, professional education and consumer markets. Tribune's strategy is to focus on its media businesses of broadcasting, publishing and interactive.

``Tribune Education fits exceptionally well within our existing education business by providing complementary products and expansion opportunities at all levels of the education market,'' said Harold McGraw III, chairman, president and CEO of The McGraw-Hill Companies. ``Education enrollments continue to grow and this acquisition will allow us to provide a more complete and more diverse selection of educational materials to meet the robust U.S. adoption schedules across educational disciplines, and to meet the growing worldwide demand for lifelong learning materials.''

The McGraw-Hill Companies will pay $634.7 million, subject to appropriate post-closing adjustments, to purchase Tribune Education, which had 1999 pro-forma revenue of $384 million. The transaction is expected to close in the third quarter of 2000.

Tribune Education consists of five educational segments spanning pre-K through college and professional, including: The Wright Group - language arts, reading, educational software and teacher training; NTC/Contemporary Publishing - foreign language, health, social studies, English, and non-fiction adult trade and reference; Everyday Learning/Creative Publications - Mathematics and health; Instructional Fair Group - early childhood learning, educational toys, and special education; and Landoll, Inc. - children's book publisher with a significant licensed portfolio including Winnie The Pooh.