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Career Education Sells European Assets to Apax PartnersFont size: A | A | A5:10 PM ET 10/24/13 | Dow Jones
By Michael Calia

Career Education Corp. (CECO) on Thursday said it agreed to sell its European education properties to private equity firm Apax Partners for a total of $305 million.

Shares of Career Education were up 58% to $6 in after-hours trading.

The company said it expects to receive $276.5 million in cash at the closing of the deal, which is expected before the end of the year.

The deal comes as Career Education and other for-profit education companies struggle with declining enrollment.

Career Education's European assets, which include operations in Paris and Monaco, generated $128.6 million in revenue last year, about 9% of the company's consolidated revenue, Career Education said.

"This transaction is a key step in our restructuring efforts," Career Education Chief Executive Scott W. Steffey said. The company will redeploy capital to focus more on U.S. operations, where the majority of its students are located, he added.

The company's stock is up 8.2% so far this year.



Write to Michael Calia at [e-mail]

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October 24, 2013 17:10 ET (21:10 GMT)

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