PHOENIX--(BUSINESS WIRE)--Jul. 30, 2009--
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. “Joining Apollo Global will provide
the business with access to Apollo’s substantial expertise and
resources, helping us continue to innovate and deliver the high quality
education our students and customers expect. The combination of our
leading positions in our chosen markets, breadth of teaching talent, and
Apollo’s deep understanding and experience in delivering a broad range
of educational programs will create a stronger force in the European
market and greater opportunities for BPP’s students and employees. I
look forward to being a part of the continuing success of the combined
Founded in 1976 and based in London, England, BPP is a leading provider
of education and training to professionals in the legal and finance
industries. It is organized into three business divisions: (1)
Professional Education, which provides certification and continuing
education in accounting and tax, professional development and financial
services; (2) College of Professional Studies, which operates four law
schools, human resource training and a business school; and (3) Mander
Portman Woodward (MPW), which operates independent fifth and sixth form
colleges (similar to preparatory schools in the US). BPP is the first
private sector institution to have been granted degree awarding powers
in the UK.
About Apollo Group, Inc.
Apollo Group, Inc. has been an education provider for more than 30
years, providing academic access and opportunity to students through its
subsidiaries, University of Phoenix, Institute for Professional
Development, College for Financial Planning, Western International
University, Meritus University, Insight Schools and Apollo Global. The
Company's distinctive educational programs and services are provided at
the high school, undergraduate, graduate and doctoral levels in 40
states and the District of Columbia; Puerto Rico; Canada; Mexico; Chile;
and the Netherlands, as well as online throughout the world (data as of
May 31, 2009).
For more information about Apollo Group, Inc. and its subsidiaries, call
(800) 990-APOL or visit the Company’s website at www.apollogrp.edu.
About Apollo Global, Inc.
Apollo Global, Inc., formed in 2007, is a joint venture between Apollo
Group, Inc. and private equity firm, The Carlyle Group. Apollo Global’s
vision is to broaden student opportunity, grow the knowledge base of the
communities it serves and advance the educational landscape worldwide.
Apollo Global is a consolidated subsidiary of Apollo Group, Inc.
Forward-Looking Safe Harbor
Statements in this press release which are not statements of historical
fact, including statements regarding Apollo Group’s business outlook,
future financial and operating results, future enrollment, and overall
future strategy and plans, are forward-looking statements, and are
subject to the Safe Harbor provisions created by the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on current information and expectations and involve a number of
risks and uncertainties. Actual results may differ materially from those
projected in such statements due to various factors. For a discussion of
the various factors that may cause actual results to differ materially
from those projected, please refer to the risk factors and other
disclosures contained in Apollo Group’s previously filed Form 10-K,
Forms 10-Q, and other filings with the Securities and Exchange
Source: Apollo Group, Inc.
Apollo Group, Inc.
Investor Relations Contacts:
Sara Jones, 818-326-1871
The Maitland Consultancy Ltd.
Waller, (44) 020-7379-5151
Devas, (44) 020-7379-5151