earnings announcement, McGraw-Hill(MHP), provided an update on the spinoff plan, and stated that it “remains on track to establish two separate industry leaders by year-end.”
The company “has received a ruling from the Internal Revenue Service agreeing to the tax-free status for the spin-off of McGraw-Hill Education,” and “plans to file the Form 10 in the coming weeks.”
The company, which spent $33 million in the quarter preparing for the split, will create two companies:
McGraw-Hill Financial will focus on providing integrated solutions within and across market segments that fulfill evolving customer needs. The Corporation will take advantage of scale utilizing common platforms, processes and standards. It will use its vast global footprint and strong channel relationships to expand business organically. The Corporation will also utilize targeted acquisitions and alliances as well as cost-reduction initiatives to deliver additional shareholder value.
McGraw-Hill Education will seek to maintain the core business for profitability while simultaneously pursuing growth. The Corporation is also working to expand its educational services, exploit high-growth digital-enabled learning, build presence in emerging markets and pursue compelling acquisitions and partnerships.
We look forward to the upcoming release of the Form 10 for additional info on the company and the plan.
Disclosure: The author holds no position in any stock mentioned
