The McGraw-Hill Companies announced the approval of a new Growth and Value Plan that separates the entity into two public companies: McGraw-Hill Markets and McGraw-Hill Education. McGraw-Hill Markets will focus primarily on capital and commodities markets, and McGraw-Hill Education will focus on education services and digital learning. The plan aims to accelerate growth and increase shareholder value by reducing costs, accelerating the pace of share repurchases, and dividing the company so that both can fully leverage brands, franchises, and market positions.
McGraw-Hill's Education and Markets companies will have tailored capital structures and financial policies, and are designed to enable deeper customer engagement, accurate cost structures, and increased management. Led by Terry McGraw as chairman, president and CEO, McGraw-Hill Markets will include brands such as Standard & Poor's and Platts, as well as J.D. Power and Associates. McGraw-Hill Education will serve the K-12, higher education, and professional education markets, and will have greater flexibility to develop and deploy new products and services as a separate company. A CEO for McGraw-Hill Education has not yet been named.