McGraw-Hill Companies

 

 

 

McGraw-Hill Sells Education Business to Apollo for $2.5 Billion

-- November 27, 2012: The McGraw-Hill Companies announced yesterday that it has signed a definitive agreement to sell its McGraw-Hill Education business to Apollo Global Management, LLC for $2.5 billion. The transaction is expected to close in late 2012 or early 2013.

Upon closing, McGraw-Hill will be renamed McGraw Hill Financial, and the company will focus on the global capital and commodities markets. With customers in more than 150 countries, McGraw Hill Financial expects 2012 revenue of approximately $4.4 billion.

Harold McGraw III, chairman, president and CEO of The McGraw-Hill Companies, will lead McGraw Hill Financial once the transaction is completed. After the divestment the company will have approximately 17,000 employees in more than 30 countries around the world.

McGraw said "Today's transaction marks a transformative time for our company, shareholders, customers and employees. This move builds on McGraw-Hill's strong legacy and gives us an unprecedented opportunity to focus on accelerating the growth of our iconic brands and leading franchises such as Standard & Poor's, S&P Dow Jones Indices, S&P Capital IQ, Platts and J.D. Power and Associates. The strong trends driving global financial markets create enormous growth opportunities for McGraw Hill Financial. As markets become more interconnected, as more borrowers around the world fund growth through the capital markets, and as technology produces more and more data in a complex world, our leading brands provide essential intelligence and independent benchmarks across asset classes and markets."

The McGraw-Hill Companies announced in September 2011 it would separate into two companies following a year-long strategic portfolio review.

John Rennie Named Editorial Director of McGraw-Hill Science Publishing Group

-- July 24, 2012: McGraw-Hill Professional announced that John Rennie has signed on with the division as editorial director, overseeing for Professional's science program.

Rennie assumes responsibility for the ongoing editorial development of the AccessScience digital subscription platform and the Encyclopedia of Science and Technology (EST). He will also create strategies for expanding their reach and deepening their content.

"John will play a key role in refining the editorial strategy for our science group in an increasingly digital environment," said Steve Chapman, publisher of the Science-Technology group. "His deep experience in presenting science to a broad, non-specialist audience will be invaluable as we grow the AccessScience platform."

Rennie previously served as as editor in chief of Scientific American Magazine.

His appointment at McGraw-Hill takes effect immediately.

McGraw-Hill Announces Plan to Split in Two

-- Two "pure-play" public companies will take the place of The McGraw-Hill Companies, the company announced on September 12, 2011, with the goals of streamlining operations and reducing costs.

The McGraw-Hill board of directors has unanimously approved the plan to separate into companies: McGraw-Hill Markets (focused on capital and commodities markets) and McGraw-Hill Education (focused on education services and digital learning).

As part of the plan, McGraw-Hill will accelerate share repurchases to a total of $1 billion for the full year 2011 (approximately $540 million repurchased year to date)

Harold (Terry) McGraw III, Chairman, President and Chief Executive Officer, said, "Our Growth and Value Plan will transform a multifaceted corporation into two powerful companies, each with highly focused strategies, aligned customer bases and interconnected markets. After thorough analysis, the Board determined that the creation of these two independent companies is the best and most reliable way to generate superior shareholder value. Because both companies will be sharply defined, they will create two pure-play investment opportunities and present a more transparent capital markets profile, enabling investors to better assess their value, performance and potential."

McGraw-Hill Markets, which will be led by Terry McGraw as chairman, president and CEO, will focus on global capital and commodities markets by providing customers with benchmarks, information, and solutions, using proprietary data and analytics platforms to inform decision-making on trillions of dollars of assets.

McGraw-Hill Markets will include Standard & Poor's, Platts (a leading provider of information and indices in energy, petrochemicals and metals), and J.D. Power and Associates (a global market research company). McGraw-Hill Markets serves customers in more than 150 countries and expects 2011 revenues of approximately $4 billion with close to 40% from international markets.

McGraw-Hill Education will become an independent business operating in the K-12, higher education and professional education markets. The education services and digital learning company offers educational materials online and in print for K-12, supplemental digital services to the elementary and high-school markets, and post-secondary educational resources and digital learning systems to universities and other higher education and professional institutions and organizations worldwide.

McGraw-Hill Education expects revenues of approximately $2.4 billion in 2011.

McGraw-Hill management is developing detailed separation plans, and the Company expects to complete the transaction by the end of 2012 through a tax-free spin-off of the education business to McGraw-Hill shareholders, subject to various conditions including final board approval and a tax ruling from the Internal Revenue Service.

Department of Education Sources Cite Effectiveness of McGraw-Hill Everyday Math Program

-- January 13, 2011 -- Everyday Mathematics, offered by McGraw-Hill Education, is one of the most effective and the most widespread elementary school programs in the U.S. Mid-Atlantic states, according to U.S. Department of Education sources including the U.S. Department of Education's What Works Clearinghouse (WWC) and the department-funded Mid-Atlantic Regional Education Lab.

A survey by the regional education lab tabulated the usage of instructional materials and programs that were evaluated by the WWC, a central government source of scientific evidence for what works in education. From March to September 2009, data was collected from 90 percent of some 1,113 school districts in Delaware, the District of Columbia, Maryland, New Jersey, and Pennsylvania.

"Everyday Mathematics' research-based curriculum actively engages students as they learn math, resulting in solid performance and progress across districts nationwide," said Dan Caton, executive vice president of McGraw-Hill's School Education Group. "This Department of Education survey highlights the reach of Everyday Mathematics, which is based on 25 years of research and development. We are extremely proud to provide this exceptional program to more than 4 million students nationwide."

State Education Leader Dr. Steven L. Paine Joins McGraw-Hill

-- December 14, 2010 -- CTB/McGraw-Hill today announced that Dr. Steven L. Paine has been appointed vice president of Strategic Planning and Business Development. For the past five and a half years, he was State Superintendent of Schools for West Virginia. Prior to that he served as Deputy State Superintendent and held positions at the district and local levels as a superintendent, curriculum administrator, principal, assistant principal and teacher. Dr. Paine brings that wealth of experience and a strategic vision for assessment and innovation to McGraw-Hill.

In his new role, Dr. Paine is charged with enhancing market positioning of CTB's assessment solutions and promoting business growth through industry outreach, strategic planning, and relationships with key stakeholders. He will also establish comprehensive strategic and tactical plans to further the company's business development goals in the online student assessment, and intervention markets.

As State Superintendent of Schools in West Virginia, Dr. Paine produced notable benchmarks and demonstrated exceptional executive leadership and oversight of a diverse population of 280,000 students, 720 schools and 55 county school systems. He developed and implemented an internationally benchmarked learning system entitled Global21: Students Deserve It. Our World Demands It, arming students with the 21st century skills they need to be motivated, self-directed and prepared for the future, and Teach21, an online resource bank for teachers.

CTB/McGraw-Hill has an 84-year record of innovation and excellence in assessment, and serves more than 18 million students in all 50 states and in 46 countries.

Cognitive Science is Key Behind Adaptive Learning Tools and Accelerating Student Achievement

-- December 7, 2010 -- If humans are born to learn, creating order out of chaos from the time we first open our eyes, why do students' minds often shut down when they enter the classroom? According to Dr. Andrea Pascarella, director of development for digital content and pedagogy at McGraw-Hill Education, and Dr. David Echevarria, assistant professor of experimental psychology at the University of Southern Mississippi, the reason is that the formal practice of education greatly differs from how human beings accept and process knowledge.

Today Pascarella and Echevarria released a position paper, "Born to Learn: Developments in Cognitive Science and Artificial Intelligence Inspire New Adaptive Learning Tools," which explores what we have come to understand about how human beings learn and how adaptive learning tools based on cognitive research and artificial intelligence can effectively drive student achievement in 21st century classrooms.

In the paper, the authors argue that while most students enjoy the process of learning, they often struggle in the classroom because:

* They are being directly imparted with knowledge instead of gaining it through personal experience;

* Their learning style differs from the manner in which the material is being taught, and

* Educational tools have not sufficiently evolved to address students' need for greater stimulation to stay engaged.

McGraw-Hill Programs Recommended by the Texas Commissioner of Education

-- December 6, 2010 -- The Texas Commissioner of Education recently announced that McGraw-Hill Education's leading programs conform to the Texas Essential Knowledge and Skills requirements and have been listed for 2011 adoption. Three McGraw-Hill programs, DLM Early Childhood Express, Texas Treasure Chest and Texas Writers Workspace, have been listed for Texas adoption in 2011.

DLM Early Childhood Express, listed for Prekindergarten Systems, teaches 3- and 4-year-olds essential concepts in reading, math and other core subjects through a comprehensive learning system that prepares them for a lifetime of learning. Texas Treasure Chest, listed for ESL grades K-5, is a comprehensive program for language acquisition offering differentiated language leveled readers, manipulatives, practice books, assessment and online support. Texas Writers Workspace, listed for English Language Arts grades 6-12, is designed to engage 21st century students through online, interactive writing workshops, while providing rigorous writing and grammar instruction.

McGraw-Hill's proven programs, listed in Texas and spanning grades PreK-12, offer school districts and teachers the tools to differentiate instruction so all students can thrive as lifelong learners who can succeed in the classroom and beyond. These programs incorporate student assessment, digitally rich programming and online teaching tools to ensure students develop a solid foundation for future success.

The McGraw-Hill Companies Announces Organizational and Management Changes

-- November 15, 2010 -- The McGraw-Hill Companies today announced organizational and management changes to drive global growth and innovation.

* The current Financial Services segment will be realigned into two separate segments:

o Standard & Poor's -- the leading credit ratings company -- with Deven Sharma as President, and

o McGraw-Hill Financial -- combining leading brands and businesses such as S&P Indices, Capital IQ, Valuations & Risk Strategies and MarketScope Advisor -- with Lou Eccleston as President.

* Jack F. Callahan, Jr ., who most recently served as CFO at Dean Foods and in senior management roles at PepsiCo, General Electric Company and McKinsey & Company, will become Executive Vice President and CFO of The McGraw-Hill Companies, succeeding Robert J. Bahash.

* Robert J. Bahash will become the new President of McGraw-Hill Education.