McGraw-Hill Companies Inc’s (MHP) education unit is expected to draw final bids from private equity firms Bain Capital and Apollo Global Management (APO) as well as rival Cengage Learning Inc, at a potential value of $3 billion. Cengage, the No. 2 U.S. college textbook publisher, BAIN Capital and Apollo are working on final offers for McGraw-Hill Education.
McGraw-Hill which is holding the auction as an alternative to a planned spin-off of the education division, wants to get more than $3 billion and could still decide against a sale if the bids fail to meet its price expectations.
McGraw-Hill Education with revenues of $2.3 billion and operating income of $260 million in 2011 distributes its textbooks in 65 languages across 157 countries. About 18 percent of the revenue is international, with digital-related solutions accounting for over 20 percent.