Friday, March 30, 2012
Many college students take commercial prep courses to get ready for the LSATs. Princeton Review has been a prominent choice. However, Princeton Review has announced that it is getting out of the test-prep business and selling it to another company:
Princeton Review Inc. has agreed to sell its test -preparation business and the "Princeton Review" brand to private-equity firm Charlesbank Capital Partners for $33 million, shedding its biggest unit and shifting its focus to its online education operation.
The company, best known for its tutoring services and college guides, entered the online education market in December 2009 with the $170 million purchase of Penn Foster Education Group Inc., which at the time ran three distance-learning schools for more than 223,000 students. The schools offer high-school diplomas as well as vocational training and college degrees in business, health care and other areas.
The Penn Foster venture effort got off to a slow start, and growth has remained elusive. In November, the company reported that third-quarter revenue at the Penn Foster segment declined 10% to $21 million, which it attributed to lower enrollment. The Higher Education Readiness—or test prep—unit saw revenue rise 9% to $33.4 million during that period, the latest available, as publishing-related royalties offset declining enrollment in classroom tutoring.
Here’s the story from the Wall Street Journal.