The company which owns BPP is set to be sold for $1.1 billion (£760 million).
Publically-listed Apollo Education Group (AEG), which bought BPP seven years ago for £368 million, owns several for-profit education institutions. Following the death of the family-owned company's founder, his son is now in negotiations to sell AEG. A group of three private equity houses, Chicago investment firm Vistria Group, Najafi Companies and (unrelated) Apollo Global Management, are set to complete the purchase in August.
AEG is the subject of ongoing state and federal investigations in the US in relation to its ownership of the University of Phoenix. It has been accused of using deceptive advertising and dodgy recruitment practices to target low income students and of saddling them with huge debts (so, nothing like the UK). The Defense Department even imposed a temporary ban preventing AEG from recruiting students on its military bases, while the University of Phoenix has suffered a huge drop in enrolments from 500,000 per year at its peak to 176,000. AEG reported an operating loss of $45 million in the last quarter, while in the last 12 months its share price has fallen 76%.
In sharp contrast, BPP has escaped the whiff of scandal, obtained university status and built up an impressive list of 55 exclusive law firm clients. RollOnFriday understands that when BPP was bought by AEG it comprised 5% of the company's value. The cratering of AEG means it now accounts for 45%.
With approximately £150 million in property assets and no debt, BPP is the jewel in AEG's crown. RollOnFriday believes it would make an attractive target for a management buyout. You heard it here first.
BPP Dean and Chief Executive Peter Crisp said, “We all welcome the opportunity to work with the eventual new owners in delivering our exciting vision to be the global leading professional education provider".
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Publically-listed Apollo Education Group (AEG), which bought BPP seven years ago for £368 million, owns several for-profit education institutions. Following the death of the family-owned company's founder, his son is now in negotiations to sell AEG. A group of three private equity houses, Chicago investment firm Vistria Group, Najafi Companies and (unrelated) Apollo Global Management, are set to complete the purchase in August.
AEG is the subject of ongoing state and federal investigations in the US in relation to its ownership of the University of Phoenix. It has been accused of using deceptive advertising and dodgy recruitment practices to target low income students and of saddling them with huge debts (so, nothing like the UK). The Defense Department even imposed a temporary ban preventing AEG from recruiting students on its military bases, while the University of Phoenix has suffered a huge drop in enrolments from 500,000 per year at its peak to 176,000. AEG reported an operating loss of $45 million in the last quarter, while in the last 12 months its share price has fallen 76%.
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In sharp contrast, BPP has escaped the whiff of scandal, obtained university status and built up an impressive list of 55 exclusive law firm clients. RollOnFriday understands that when BPP was bought by AEG it comprised 5% of the company's value. The cratering of AEG means it now accounts for 45%.
With approximately £150 million in property assets and no debt, BPP is the jewel in AEG's crown. RollOnFriday believes it would make an attractive target for a management buyout. You heard it here first.
BPP Dean and Chief Executive Peter Crisp said, “We all welcome the opportunity to work with the eventual new owners in delivering our exciting vision to be the global leading professional education provider".
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