By Kevin McCauley
Sard Verbinnen and Company handles McGraw-Hill Cos., which today announced that it will split into two "pure play" companies in an effort to bolster returns for investors.
CEO Terry McGraw, CEO, is to head the financial ratings and research company that is currently being called McGraw-Hill Markets.
It has about $4B in annual ratings from Standard & Poor’s, Platts (information and indices for the energy, petrochemical and metals sectors), and J.D. Power and Assocs.
The company is looking for a CEO to head the other firm called McGraw-Hill Education. Robert Bahash is helming the $2.4B unit on an interim basis. The book and digital services operation sees a bright future with the rise in spending for education in developing markets like China, India and Brazil.
The 123-year-old company, which has been under pressure from activist investors, also plans to cut operating costs by $1B and step up its stock buyback program.
The so-called "growth and value plan" is expected to be completed by the end of next year.
SV&C’s George Sard, Brandy Berman and Michael Henson are working the McGraw-Hill split-up.
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