SANTA ANA, Calif., Dec. 14 /PRNewswire-FirstCall/ -- Corinthian Colleges, Inc. (Nasdaq: COCO) today announced that it has entered into an asset purchase agreement to sell 12 Canadian schools. These schools, located outside the province of Ontario, are being sold to a wholly owned subsidiary of The Eminata Group, in a cash transaction valued at CAD $7.4 million. The agreement is subject to a negative working capital adjustment to be made at closing. The closing of the transaction is conditioned upon receipt of regulatory approvals, landlord consents, and other customary closing conditions. Corinthian currently expects the transaction to close in its third fiscal quarter. Corinthian Colleges previously announced the planned divestiture of the 12 CDI campuses and has accounted for the schools as discontinued operations. Combined, the divested campuses generated revenues of approximately CAD $35 million in fiscal 2007.
"The divestiture allows us to focus on our 17 Everest schools in the Province of Ontario, where we have the number one position in the career training market and excellent growth potential," said Jack Massimino, Corinthian's chief executive officer. "Our goal was to find a strategic partner for these schools that could add incremental value and be a good home for CDI students and employees."
About Corinthian Colleges, Inc.
Corinthian Colleges, Inc. is one of the largest post-secondary education companies in North America. The Company's mission is to prepare students for careers in demand or for advancement in their chosen field. Corinthian offers diploma programs and associates, bachelor's and master's degrees in a variety of high-demand occupational areas, including healthcare, business, criminal justice, transportation technology and maintenance, construction trades and information technology. More information can be found on Corinthian's website at http://www.cci.edu.
Certain statements in this press release may be deemed to be forward-looking statements under the Private Securities Litigation Reform Act of 1995. The company intends that all such statements be subject to the "safe-harbor" provisions of that Act. Such statements include Corinthian's expectations about the expected closing of the transaction. Many factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements, including risks associated with obtaining regulatory approvals and landlord consents to the transaction, as well as the satisfaction of the other conditions to closing, and other risks and uncertainties described in the Company's filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Anna Marie Dunlap
SVP Investor & Corporate Communications
Corinthian Colleges, Inc.
Pondel Wilkinson, Inc.
SOURCE Corinthian Colleges, Inc.