World Cup ahead, Pearson spends £440m to teach English to Brazilians
With its eyes focused on Brazil’s World Cup next year and the 2016 Olympic Games, Financial Times owner Pearson is buying Grupo Multi, an English-language training company in Brazil with more than 800,000 students, for £440 million.
Pearson aims at the Olympics, too
The London-based publishing and education group is buying the company from its 78% majority shareholder, the family of founder Carlos Martins, and Itau Unibanco Holding S.A.
"A shortage of English speakers in key sectors including tourism, transportation, and hospitality is considered to be one of Brazil's challenges as it prepares to host high-profile global events including the World Cup and the Olympics," Pearson said .
The Wall Street Journal said the acquisition comes as Pearson, the world's largest publisher of educational materials, is shifting its education businesses to emerging markets and prioritise digital content, software and services over print.
Last week Pearson sold Mergermarket, publisher of financial news and business intelligence , for £382 million to BC Partners, a London-based private-equity firm.
This was more than double what Pearson paid for it in 2006 - and nine times the $70 million that the New York Times recently got when it sold the Boston Globe .
John Fallon, Pearson’s chief executive, said then that Mergermarket did not fit Pearson’s strategy centred on education products.Now comes the Brazilian move.
As well as Brazil, Pearson is rolling out language schools and digital learning programs in China and India
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Pearson said Multi is the largest provider of private language schools in Brazil, with more than 2,600 franchised schools . Multi reported operating profit of £42 million in 2012.
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Pearson says Brazil is one of the world's largest English language learning markets, worth an estimated £2 billion . In all 2.8 million Brazilian students are enrolled across children, teenage and adult age groups.