Apollo Group Enters Mexican Education Market
August 05 2008 - 8:00AM
Business Wire
Apollo Global, Inc., a consolidated subsidiary of Apollo Group,
Inc. (Nasdaq: APOL) (�Apollo Group,� �Apollo� or the �Company�)
announced it has purchased a majority stake in Universidad
Latinoamericana S.C. (�ULA�), an accredited, private university
based in Mexico City, from Carlyle Mexico Partners. �We are pleased
to invest in an institution such as ULA with its 32-year history
and solid reputation,� stated Greg Cappelli, Chairman of Apollo
Global. �This commitment reflects our desire to provide
high-quality education to students throughout Mexico and the
region. We have been working to identify opportunities that will
create value for Apollo Group shareholders, and we believe ULA,
coupled with Mexico�s strong enrollment trends and growing economy,
is an excellent fit.� Founded in 1975, ULA is renowned for its
dentistry, medicine and communications programs accredited by the
Ministry of Public Education (Secretar�a de Educaci�n Publica, SEP)
in Mexico. ULA carries authorization from the National Autonomous
University of Mexico (Universidad Nacional Aut�noma de M�xico,
UNAM) for its high school and undergraduate psychology and law
programs. With four campuses throughout Mexico, including two in
Mexico City, one in Tlalnepantla de Baz, and a fourth in the city
of Cuernavaca, ULA offers 27 degree programs and has more than
4,000 students. Alberto Sancho, Rector of ULA, stated, �We are
proud to join the prestigious family of Apollo institutions, with
which we share the same ideals of academic excellence and
high-level service to our students. Apollo is now our long-term
strategic partner. Leveraging our excellent faculty with Apollo�s
world-class methods for curriculum development, we will offer our
students an advanced educational experience, preparing them for
Mexico�s growing economy.� Prior to Apollo Global�s purchase of a
majority stake, ULA was a portfolio company of Carlyle Mexico
Partners, a private equity fund managed by The Carlyle Group.
Carlyle Mexico Partners will continue to own a 35% equity stake in
ULA and have representation on its Board of Directors. Joaquin
Avila, Managing Director and Head of the Carlyle Mexico team, said,
�ULA has a bright future. We have been working to grow the
university for the past two years, and a partnership with Apollo
Group, a leader in the sector, affirms and furthers these efforts.
In this way, ULA solidly makes its entrance into a globally
connected educational community, creating an even more attractive
offering for Mexican students. We will continue to actively
participate in ULA�s growth as part of our commitment to ULA and
Mexico. ULA�is a great example of the valuable benefits that�can be
achieved�by a�Mexican�institution�partnering with a private equity
group such as Carlyle Mexico Partners.� Apollo Global purchased a
65% stake in ULA based on an implied enterprise value of $47
million. Mexico offers an attractive market opportunity with an
estimated 2.5 million post-secondary students, as well as the
second largest population and the highest per capita GDP in Latin
America. Participation rates in private education are growing
faster than in the public sector. Today, approximately 32% of
higher-education students are enrolled in private universities.
About Apollo Global, Inc. Apollo Global, a $1 billion joint venture
formed in 2007, is 80.1% owned by Apollo Group, Inc. and 19.9%
owned by private equity firm The Carlyle Group. Apollo Global was
formed with the intention of making a range of investments in the
international education services sector. Apollo Global targets
investments and partnerships primarily in countries outside of the
U.S. with attractive demographic and economic growth
characteristics. Apollo Global is a consolidated subsidiary of
Apollo Group, Inc. About Apollo Group, Inc. Apollo Group, Inc. has
been an education provider for more than 30 years, providing
academic access and opportunity to students through its
subsidiaries, University of Phoenix, Institute for Professional
Development, College for Financial Planning, Western International
University, Meritus University, Insight Schools and Apollo Global.
It also owns Aptimus, a provider of innovative digital media
solutions. The Company's distinctive educational programs and
services are provided at the high school, college and graduate
levels in 40 states (as of May 31, 2008) and the District of
Columbia; Puerto Rico; Alberta and British Columbia, Canada;
Mexico; Chile; and the Netherlands, as well as online, throughout
the world. For more information about Apollo Group, Inc. and its
subsidiaries, call 800-990-APOL or visit the company�s website at
www.apollogrp.edu. About The Carlyle Group The Carlyle Group is a
global private equity firm with $82.7 billion of assets under
management committed to 60 funds as of March 31, 2008. Carlyle
invests in buyouts, venture & growth capital, real estate and
leveraged finance in Africa, Asia, Australia, Europe, North America
and South America focusing on aerospace & defense, automotive
& transportation, consumer & retail, energy & power,
financial services, healthcare, industrial, infrastructure,
technology & business services and telecommunications &
media. Since 1987, the firm has invested $46.3 billion of equity in
802 transactions for a total purchase price of $216 billion. The
Carlyle Group employs 950 people in 21 countries. In the aggregate,
Carlyle portfolio companies have more than $109 billion in revenue
and employ more than 415,000 people around the world.
www.carlyle.com Investor Forward-Looking Safe Harbor Statements in
this press release regarding Apollo Group�s business outlook,
future financial and operating results, and overall future
prospects, are forward-looking statements, and are subject to the
Safe Harbor provisions created by the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on
current information and expectations and involve a number of risks
and uncertainties. Actual results may differ materially from those
projected in such statements due to various factors. For a
discussion of the various factors that may cause actual results to
differ materially from those projected, please refer to the risk
factors and other disclosures contained in Apollo Group�s
previously filed Form 10-K, Forms 10-Q, and other filings with the
Securities and Exchange Commission.
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