Apollo Group, Inc. (Nasdaq:APOL) (“Apollo Group” “Apollo” or “the
Company”) today announced that its majority-owned subsidiary Apollo
Global, Inc. has completed the previously announced acquisition of
UK-based BPP Holdings plc (LSE:BPP) (“BPP”).
“We are excited to welcome BPP to Apollo Global and look forward to
joining together to provide enhanced educational advancement and career
development opportunities to professionals in the UK and throughout
Europe," said Greg Cappelli, co-chief executive officer of Apollo Group
and chairman of Apollo Global. "BPP provides us with an ideal platform
from which we can expand our European presence. We have long been
impressed with BPP, the reputation of its academic programs, the caliber
of the faculty and employees, and the leadership and direction of its
management team. Together our organizations are a good fit
strategically, operationally and culturally.”
In accordance with the previously announced terms of the transaction,
Apollo Global purchased all of the outstanding shares of BPP at 620
pence per share in cash. At current exchange rates, the purchase price
for BPP, including assumed term debt and seasonally drawn revolver, as
well as transaction related expenses, less cash acquired, is
approximately $607 million. The transaction, less net debt assumed, is
being funded by an intercompany loan of approximately $104 million from
Apollo Group to Apollo Global, $375 million in capital contributions
from Apollo Group and $55 million in capital contributions from Apollo
Global’s minority shareholder, the Carlyle Group (“Carlyle”). After this
transaction and including all previous capital contributions, Apollo
Group's ownership in Apollo Global has increased to approximately 86.1%
from the previous 80.1%. Based upon the preliminary purchase price
allocation, the Company does not expect the acquisition to have a
material impact on its earnings per share in fiscal 2010 and believes
BPP will create long-term shareholder value.
Brooke Coburn, managing director and head of Carlyle Growth Partners and
a member of the Board of Apollo Global, added, "We are delighted with
the addition of the BPP organization into our portfolio of education
investments. We are excited about the potential of the large and growing
global education sector, and we are pleased to have an organization with
the history and reputation of BPP as a platform to expand this mission
into the European market."
“This is an exciting opportunity for BPP,” said Roger Siddle, chief
executive officer of BPP Holdings.
