SCHAUMBURG, Ill. (AP) — Career Education Corp. announced Thursday that it has reached an agreement to sell its European education businesses to Apax Partners, a private equity firm as part of its restructuring efforts.
Shares jumped 58 percent to $60 in after-hours trading.
The for-profit education company said it expects to receive $276.5 million in cash upon completion of the sale. That is expected to occur before the end of the year.
The businesses being sold include the Paris-based INSEEC Group and the International University of Monaco. The European operations had revenues of $128.6 million last year, representing around 9 percent of Career Education's total, the company said.
Career Education, based in Schaumburg, Ill., operates schools including Le Cordon Bleu North America and Colorado Technical University. Like the other for-profit education firms, it has faced public criticism in recent years over high drop-out rates, poor job prospects and high debt levels of its students. New federal regulations have led to lower enrollment at many for-profit schools.