Graham Holdings, the former parent company of The Washington Post, has agreed to sell 38 physical campus operations of its Kaplan education business to Education Corporation of America, a Birmingham, Ala.-based operator of private accredited colleges in the United States.
The deal, made public Thursday in a Securities and Exchange Commission filing, includes all Kaplan College campuses. The all-stock transaction would give Kaplan a preferred-equity interest in Education Corporation of America. Financial terms were not disclosed.
The transaction, subject to approval from regulatory and accrediting agencies, is slated to close in 90 to 180 days.
In 2014, the unit that included Kaplan’s campuses had revenue of $275 million and operating losses of $12.5 million. More than 12,500 students are enrolled in Kaplan College schools.
Education Corporation of America operates 34 campuses, including Virginia College’s 27 campuses, primarily located in the Southeast. The deal would boost the company’s presence to 72 campuses.
As part of the deal, Kaplan would appoint one member to the board of directors of Education Corporation of America.
Kaplan is a subsidiary of Graham Holdings and its largest division. In the United States, Kaplan will continue to operate the online Kaplan University and the eight professional schools under its banner, including Concord Law School and Open College.
“We think Education Corporation of America presents an optimum match for the Kaplan College Campus portfolio of institutions and programs and anticipate they will bring the benefits of added scale to these operations,” Kaplan chief executive Thomas C. Leppert said in a statement.