Providence Equity Partners and Goldman Sachs Capital Partners Complete $3.4 Billion Acquisition of Education Management Corporation4 June 2006
Education Management Corporation (Nasdaq: EDMC), a leading provider of post-secondary education, announced today that Providence Equity Partners and Goldman Sachs Capital Partners have completed their acquisition of the Company in a transaction valued at approximately $3.4 billion. Under the terms of the agreement, the Company's stockholders will receive $43.00 in cash for each share of EDMC common stock that they hold.
"We are very pleased that we were able to complete the acquisition of EDMC in such a timely manner," said John R. McKernan, Jr., the Company's Chief Executive Officer. "We look forward to working with our new owners to continue to build upon our strong track record of meeting the needs of our students and providing them with the highest level of education."
Paul Salem, Senior Managing Director of Providence Equity Partners, said, "We are excited to be partnering with EDMC. We are confident in the continued growth of the higher education industry and EDMC's ability to be a leader through its high quality classes and expanding curriculum, campus locations and online offerings."
Adrian Jones, Managing Director at Goldman Sachs Capital Partners, said, "As new owners of EDMC, we look forward to working with EDMC management to help drive the next phase in the company's growth and continuing its legacy of helping students achieve their education goals."
EDMC stock will cease to trade on the NASDAQ and will be delisted. Under the terms of the agreement, EDMC stockholders are entitled to receive $43.00 in cash for each share of EDMC common stock that they hold. As soon as practicable, a paying agent appointed by EDMC will mail a letter of transmittal and instructions to all EDMC stockholders of record. The letter of transmittal and instructions will contain information on how to surrender EDMC common stock in exchange for the merger consideration. Stockholders of record should be in receipt of the letter of transmittal before surrendering their shares. Stockholders who hold shares through a bank or broker will not have to take any action to have their shares converted into cash as such conversions will be handled by the bank or broker.
Education Management Corporation (http://www.edmc.com) is among the largest providers of post-secondary education in North America, based on student enrollment and revenue. EDMC has 72 primary campus locations in 24 states and two Canadian provinces. EDMC's education institutions offer a broad range of academic programs concentrated in the media arts, design, fashion, culinary arts, behavioral sciences, health sciences, education, information technology, legal studies and business fields, culminating in the award of associate's through doctoral degrees. EDMC has provided career-oriented education for over 40 years.
Providence Equity Partners Inc. is a global private investment firm specializing in equity investments in media and entertainment, communications and information companies around the world. The principals of Providence Equity manage funds with over $9 billion in equity commitments and have invested in more than 80 companies operating in over 20 countries since the firm's inception in 1990. Significant investments include Bresnan Broadband Holdings, Casema, Comhem, eircom, Kabel Deutschland, Metro-Goldwyn-Mayer, Ono, PanAmSat, ProSiebenSat.1, Recoletos, VoiceStream Wireless, Warner Music Group, and Western Wireless. Providence Equity is headquartered in Providence, RI and also has offices in New York and London.
Founded in 1869, Goldman Sachs is one of the oldest and largest investment banking firms. Goldman Sachs is also a global leader in private corporate equity and mezzanine investing. Established in 1991, the GS Capital Partners Funds are part of the firm's Principal Investment Area in the Merchant Banking Division. Goldman Sachs' Principal Investment Area has formed 12 investment vehicles aggregating $35 billion of capital to date. Significant investments include: VoiceStream Wireless, Allied World Assurance, Burger King, SunGard, YES Network, Western Wireless, Nalco Company, Kabel Deutschland and Coffeyville Resources. With $8.5 billion in committed capital, GS Capital Partners V is the current primary investment vehicle for Goldman Sachs to make privately negotiated equity investments.
Statements in this press release that relate to future results and events, including statements about EDMC's anticipated financial and operating performance, are forward-looking statements within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks, uncertainties and assumptions, which change over time. Forward-looking statements speak only as of the date they are made and EDMC does not undertake any obligation to update these forward- looking statements. Actual results could differ materially from those anticipated in the forward-looking statements, and future results could differ materially from EDMC's historical performance. Factors that could cause or contribute to such differences include: general economic, political and industry conditions; EDMC's effectiveness in its regulatory compliance efforts; the effects of extensive and changing regulations on EDMC's business; changing market needs and technology; EDMC's ability to add and integrate new schools and grow its online programs; increased competition; EDMC's ability to recruit and retain key personnel; and other matters disclosed in EDMC's Securities and Exchange Commission filings, including EDMC's Annual Report on Form 10-K.
Source: prnewswire
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