EmailMcGraw-Hill (MHP $39.81 +1.09) announced board approval of separation into two public companies. McGraw-Hill Markets, primarily focused on capital and commodities markets, and McGraw-Hill Education, focused on education services and digital learning.
The three-part Plan is designed to accelerate growth and increase shareholder value by creating two "pure-play" companies with the scale, and the capital and cost structures to fully leverage their world-class franchises, iconic brands, and leading market positions, reducing costs significantly to ensure efficient operating structures for the two new companies, and accelerating the pace of share repurchases to a total of $1 billion for the full year 2011 ( approximately $540 million repurchased year to date).
The Company is conducting an extensive cost reduction program focused on over $1 billion of corporate expense and administrative and technology costs across the organization. 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 expects revenues of approximately $2.4 billion in 2011.
