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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