Apollo Group’s majority-owned subsidiary Apollo Global has completed the acquisition of UK-based BPP Holdings.
Apollo Group’s majority-owned subsidiary Apollo Global has completed the acquisition of UK-based BPP Holdings.
Founded in 1976 and based in London, BPP is a provider of education and training to professionals in the legal and finance industries.
‘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," says 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 programmes, the calibre of the faculty and employees, and the leadership and direction of its management team. Together our organisations 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 USD607m.
The transaction, less net debt assumed, is being funded by an intercompany loan of approximately USD104m from Apollo Group to Apollo Global, USD375m in capital contributions from Apollo Group and USD55m in capital contributions from Apollo Global’s minority shareholder, the Carlyle Group).
After this transaction and including all previous capital contributions, Apollo Group’s ownership in Apollo Global has increased to approximately 86.1 per cent from the previous 80.1 per cent.
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, says: "We are delighted with the addition of the BPP organisation 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 organisation 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,’ adds 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 programmes 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 organisation.’
