SCHAUMBURG, Ill.--(BUSINESS WIRE)--
Career Education Corporation (NASDAQ: CECO) today announced that it has
retained investment bank Parchman, Vaughan & Company, LLC to pursue the
divestiture of its Le Cordon Bleu North America colleges of culinary
arts. The decision to pursue the divestiture was the result of an
ongoing portfolio review that Career Education has undertaken to
evaluate the strategic direction of the company.
Built on the French culinary tradition and affiliated with the original
school in Paris, Le Cordon Bleu North America is a well-renowned brand
in the hospitality industry. It offers hands-on educational programs in
culinary arts, as well as patisserie and baking, to students at 16
campuses located in cities across the United States. It also provides
online programs in culinary arts and hotel and restaurant management. Le
Cordon Bleu students learn under the guidance of experienced chef
instructors using high quality ingredients in well-equipped
commercial-grade kitchens.
“We are proud of our Le Cordon Bleu culinary colleges and remain
committed to the success of students who attend them, but we believe
that it is in the best interest of all involved to identify a new owner
who can make a larger investment in order to expand the schools and
their offerings. We know that the Le Cordon Bleu brand is highly
regarded and in selling the institutions, we plan to maximize
shareholder value, maximize the student experience and maximize
professional opportunities for staff,” President and CEO Scott W.
Steffey said. “This divestiture will allow us to reallocate funds across
our portfolio, adding flexibility to our balance sheet as we look to
position Career Education for growth in 2015 and beyond.”
Le Cordon Bleu North America’s financial results are reported in the
Culinary Arts segment of Career Education Corporation’s Career Schools
group. For the fiscal year ended December 31, 2013, Culinary Arts
recorded total revenues of $177.5 million. As of September 30, 2014,
total student enrollment in Culinary Arts was 10,100 students.
ABOUT CAREER EDUCATION CORPORATION
The colleges, institutes and universities that are part of the Career
Education Corporation (“CEC”) family of schools offer high-quality
education to a diverse student population in a variety of
career-oriented disciplines through online, on-ground and hybrid
learning program offerings. Through its online and ground-based campuses
located throughout the United States, Career Education serves students
in career-focused programs that lead to diplomas and certificates as
well as degrees at the associate, bachelor’s, master’s and doctoral
levels.
Career Education’s University group includes American InterContinental
University (“AIU”) and Colorado Technical University (“CTU”),
institutions designed to meet the unique needs of today’s busy
non-traditional student, most of whom attend online, with a small
proportion enrolled at the ground campuses in Atlanta, Texas, Florida,
South Dakota and Colorado. The Career Schools group offers
career-centered educational programs primarily through ground-based
campuses and includes Briarcliffe College, Brooks Institute, Harrington
College of Design, Le Cordon Bleu North America (“LCB”), Missouri
College and Sanford-Brown Colleges (“SBI” and “SBC,” respectively).
Through its colleges, institutes and universities, CEC is committed to
providing high-quality education, enabling students to graduate and
pursue rewarding career opportunities.
A detailed listing of individual campus locations and web links to
Career Education’s colleges, institutes and universities can be found at www.careered.com.
Except for the historical and present factual information contained
herein, the matters set forth in this release, including statements
identified by words such as “believe,” “plan,” “will,” “look to” and
similar expressions, are forward-looking statements as defined in
Section 21E of the Securities Exchange Act of 1934, as amended. These
statements are based on information currently available to us and are
subject to various assumptions, risks, uncertainties and other factors
that could cause our results of operations, financial condition, cash
flows, performance, business prospects and opportunities to differ
materially from those expressed in, or implied by, these statements.
Except as expressly required by the federal securities laws, we
undertake no obligation to update or revise such factors or any of the
forward-looking statements contained herein to reflect future events,
developments or changed circumstances, or for any other reason. These
risks and uncertainties, the outcomes of which could materially and
adversely affect our financial condition and operations, include, but
are not limited to, the following: uncertainties regarding the
successful completion of the divestiture of the Le Cordon Bleu culinary
colleges, such as the level of buyer interest, the amount of proceeds
offered and required regulatory approvals; declines in enrollment;
rulemaking by the U.S. Department of Education or any state and
increased focus by Congress, the President and governmental agencies on
for-profit education institutions; our continued compliance with and
eligibility to participate in Title IV Programs under the Higher
Education Act of 1965, as amended, and the regulations thereunder
(including the “90-10 Rule” and financial responsibility and student
loan default rate standards prescribed by the U.S. Department of
Education), as well as national and regional accreditation standards and
state regulatory requirements; our ability to successfully defend
litigation and other claims brought against us; and changes in the
overall U.S. or global economy. Further information about these and
other relevant risks and uncertainties may be found in the Company’s
Annual Report on Form 10-K for the fiscal year ended December 31, 2013
and its subsequent filings with the Securities and Exchange Commission.
Investors:
Alpha IR Group
Chris Hodges or Sam Gibbons
(312)
445-2870
[email protected]
or
Media:
Career
Education Corporation
Mark Spencer
Director, Corporate
Communications
(847) 585-3802
Source: Career Education Corporation