Pearson To Buy Brazil's Grupo Multi For GBP 440 Mln Plus Debt - Quick Facts

(RTTNews) - Pearson Plc. (PSO, PSON.L) Tuesday said it has agreed to acquire 100 percent of Grupo Multi, an adult English Language Training company in Brazil, for about 440 million pounds or R$1.7 billion in cash and the assumption of 65 million pounds of debt. The deal is expected to be completed in the first half of 2014.

Grupo Multi will be acquired from the Martins family, the company's 78 percent majority shareholders, and the investment firm Kinea.

In 2012, Grupo Multi generated operating profits of 42 million pounds and had gross assets of 200 million pounds at December 31, 2012.

Grupo Multi is the largest provider of private language schools in Brazil and serves over 800,000 students across more than 2,600 franchised schools. It primarily delivers English language courses through school brands such as Wizard, Yazigi, Microlins and Skill.

The acquisition builds on Pearson's global presence in the delivery of English language training and on its schools "sistemas" business in Brazil.

Pearson already has over 600,000 students learning English at over 250 Pearson operated and more than 350 Pearson franchised centres around the world. In addition, Pearson has approximately 500,000 students in K12 sistemas schools in Brazil.

The acquisition supports Pearson's strategy of focusing investment in fast-growing economies, digital and services business, as well as education programs that can deliver a greater and measurable impact on learning outcomes.

During 2014, Grupo Multi will be integrated into Pearson's Professional Line of Business and Growth geographic segment.

In 2015, Pearson expects a full year contribution from Grupo Multi to enhance adjusted earnings per share and to generate a return on invested capital slightly above the company's weighted average cost of capital.