Proactiveinvestors
Pearson buys Wall Street Institute from Carlyle Group for $92 million
Education and information company Pearson PLC (LON:PSON) said it is acquiring the Wall Street Institute from an affiliate of the Carlyle Group and Citi Private Equity for US$92 million in cash.
WSI provides premium spoken English training for adults through a proprietary learning model combining web-based content, class-based instruction and digital and printed learning materials.
WSI currently has approximately 340 franchised learning centres in 25 territories across Asia, Europe, the Middle East and Latin America. Its major markets currently include France, Italy, Turkey, Chile, Venezuela, Colombia, Hong Kong, Korea and Taiwan.
WSI supports its franchisees through an international management infrastructure made up of approximately 50 employees across the Americas and Europe. WSI also directly operates a small number of learning centres, primarily in Germany, as flagship centres for testing new products and sharing best practice across the franchise network.
WSI made revenues of approximately US$60m in 2009. Pearson expects the acquisition to be earnings neutral in 2011 as it invests to expand the business in high growth markets, and to enhance adjusted EPS and generate a return above Pearson's cost of capital from 2012.
WSI will reunite with Wall Street English, a Chinese provider of premium English language training for adults, which has 44 centres across China and which Pearson acquired from Wall Street Institute in 2009. In addition, Pearson now has 23 English language training centres for children in Beijing and Shanghai under the Longman Schools brand drawing on Pearson's global English language training materials and digital learning programmes.
The combined business will be led by David Kedwards, currently CEO of Wall Street English in China. Building on the successful integration and expansion of Wall Street English, Pearson intends to support WSI's instructional process with its content, assessment and technology, and to include premium content from other parts of the company including Penguin and the Financial Times.
Pearson plans to retain the Wall Street Institute brand, which has high recognition and a strong reputation in its key markets, and to invest in new centres in both existing and new markets.
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