Private equity firm Apollo Global Management Inc. is exploring a sale of textbook publisher and education technology company McGraw-Hill Education that could fetch up to $6 billion, including debt, according to people familiar with the matter. The business could attract interest from other private equity firms, said the people, who asked not to be identified because the matter is private. The company could also explore a listing via a special purpose acquisition company, they added.

McGraw-Hill Education generates about $450 million in annual earnings before interest, taxes, depreciation and amortization, the people said. About $300 million of that is from digital sources, after the company has expanded in recent years in electronic textbooks and virtual learning, they said.

The business could fetch between $5 billion and $6 billion enterprise value if the sale goes ahead, the people said. McGraw-Hill Education is working with financial advisers Macquarie Group Ltd. and Bank of Montreal, the people added. Apollo hasn’t made a final decision on pursuing a sale and could still decide to keep the business, the people said.


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Source: BNN Bloomberg

By Liana Baker, Gillian Tan and Kiel Porter