McGraw-Hill Agrees to Buy Tribune Education

McGraw-Hill Cos., the largest U.S. publisher of educational materials for students, agreed to buy Tribune Co.’s scholastic unit for $634.7 million to add to its line of textbooks. Tribune Education publishes textbooks in math, social studies, health, English and reading for elementary and high school students. It had revenue of about $384 million in 1999. The purchase would give 112-year-old McGraw-Hill a greater reach into the retail market for children’s learning products and allow Chicago-based Tribune to focus on its broadcasting and publishing businesses, New York-based McGraw-Hill said. Earlier this month, Tribune completed its $6.8-billion purchase of Times Mirror Co. and became owner of the Los Angeles Times. McGraw-Hill shares fell $3.19 to close at $55.56 on the New York Stock Exchange. Shares of Tribune, which said it would take a $100-million second-quarter charge from the sale of the unit, rose 31 cents to close at $34.81, also on the NYSE.