By Ed Ballard
Pearson PLC (PSON.LN) said Tuesday it agreed to buy Grupo Multi,
an English language training company in Brazil with more than
800,000 students, for 440 million pounds ($721 million).
The London-based publishing and education group said it will buy
Grupo Multi from its 78% majority shareholder, the family of
founder Carlos Martins, and Itau Unibanco Holding S.A. (ITUB) unit
Kinea, which bought a stake in 2010. Pearson will pay in cash and
take on GBP65 million of debt.
"The acquisition supports Pearson's strategy of focusing
investment in fast-growing economies, digital and services
business," the company said in a statement. "A shortage of English
speakers in key sectors including tourism, transportation, and
hospitality is considered to be one of Brazil's challenges as it
prepares to host high-profile global events including the World Cup
and the Olympics."
Multi, which has more than 2,600 schools carrying a range of
brands including Wizard, Yazigi, Microlins and Skill, posted
operating profits of GBP42 million in 2012, and had gross assets of
GBP200 million on Dec. 31. Pearson said the deal is expected to
enhance adjusted earnings per share from 2015, and to generate a
return on invested capital slightly above the company's weighted
average.
Pearson shares closed at 1,343 pence on Monday, valuing the
company at GBP11 billion.
Write to Ed Ballard at ed.ballard@wsj.com
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