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McGraw-Hill Sells Education Unit to Apollo

McGraw-Hill Cos. agreed to sell its education unit to Apollo Global Management LLC for $2.5 billion as Chief Executive Officer Harold “Terry” McGraw III remakes his family’s 124-year-old company around financial services.

The transaction is expected to close by early 2013, the company said today in a statement. It will have a non-cash impairment charge of about $450 million to $550 million in the fourth quarter and use an estimated $1.9 billion in net proceeds to fund share buy backs and debt payments. McGraw-Hill rose 0.4 percent today to $51.89 in New York.