PORTLAND PRESS HERALD: Kaplan College campuses being sold to Alabama firm

Career College Central Summary:

  • Graham Holdings, formerly the parent company of The Washington Post, has agreed to sell 38 physical campus operations of its Kaplan education business to Education Corporation of America, a Birmingham, Ala.-based operator of private accredited colleges in the United States.
  • The deal, made public Thursday in a Securities and Exchange Commission filing, includes all Kaplan College campuses. The all-stock transaction would give Kaplan a preferred-equity interest in Education Corporation of America. Financial terms were not disclosed.
  • Kaplan operates three campuses in Maine – in South Portland, Lewiston and Augusta.
  • The transaction, subject to approval from regulatory and accrediting agencies, is slated to close in 90 to 180 days.
  • In 2014, the unit that included Kaplan’s campuses had revenue of $275 million and operating losses of $12.5 million. More than 12,500 students are enrolled in Kaplan College schools.
  • Education Corporation of America operates 34 campuses, including Virginia College’s 27 campuses, primarily located in the Southeast. The deal would boost the company’s presence to 72 campuses.
  • As part of the deal, Kaplan would appoint one member to the board of directors of Education Corporation of America.

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