FRAMINGHAM, Mass., March 27, 2012 /PRNewswire/ -- The Princeton Review, Inc. (Nasdaq: REVU), a leading provider of test preparation, educational support services and online career education services, announced today that it has entered into a definitive agreement to sell the assets of its Higher Education Readiness Division, or test preparation business, to an affiliate of Boston-based private equity firm Charlesbank Capital Partners. The purchase price is $33 million in cash, subject to working capital adjustments.
The sale of the Higher Education Readiness Division occurs as the company increasingly focuses on the growth and market expansion of its Penn Foster Division, a global leader in online education that provides career-focused degree and vocational programs in the fields of allied health, business, technology, education, and select other trades in the US, Canada and over 150 other countries around the world.
"We have been fortunate to be the steward of two world class brands in The Princeton Review and Penn Foster," said John M. Connolly, the company's interim CEO. "And, although the mission of both brands is fundamentally similar – to promote and enable student achievement – the needs and growth strategies of each brand are unique. Consequently, the sale of The Princeton Review brand will enable the buyer to continue fostering the brand's growth and prosperity while affording us the ability to increase our focus and energy on Penn Foster's success. We're very excited about the opportunities that this sale presents for both brands."
Under the terms of the purchase agreement, the company will sell substantially all the assets of the Higher Education Readiness Division, including all rights in the name The Princeton Review, to Charlesbank affiliate TPR Education, LLC, which will assume certain designated obligations of the business outstanding as of the closing of the transaction. The sale closing, which is subject to conditions including the receipt of certain third party consents, is expected to occur within 30 to 45 days. In connection with the sale, the company, which will serve as a holding company for the Penn Foster business, will cease to be known as The Princeton Review and will formally adopt a new, to be determined, corporate name.