Expands international presence with investment in growing Brazilian market
OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--Mar. 10, 2009--
DeVry Inc. (NYSE: DV), a global provider of educational services,
announced today that it has signed an agreement to acquire Fanor, a
leading provider of private post-secondary education in northeastern
Brazil. Under the terms of the agreement, DeVry will initially purchase
69.3 percent of Fanor including real estate for approximately $23.5
million in cash plus the assumption of Fanor debt. It is anticipated
that DeVry will reduce Fanor’s debt in the near future through an
additional recapitalization, bringing the total ownership to 82.4
Founded in 2001 and based in Fortaleza, Ceará, Brazil, Fanor is the
parent organization of Faculdades Nordeste, Faculdade Ruy Barbosa, and
Faculdade FTE ÁREA1. These three institutions operate five campus
locations in the cities of Salvador and Fortaleza, and serve more than
10,000 students through 28 undergraduate programs focused in business
management, law and engineering.
“Fanor is an excellent fit for DeVry and represents an important step in
executing our strategic plan to expand in key international markets,”
said Daniel Hamburger, president and chief executive officer of DeVry
Inc. “With this transaction, we will establish a presence in the
high-growth Brazilian market. Brazil has fully embraced market-funded
education as an effective model to provide for an educated workforce.
With its strong brand recognition, history of growth and academic
quality, Fanor provides a solid platform for continued expansion in this
The existing Fanor management team and employees will remain in place,
and will report to John Roselli, senior vice president of international
and business development. Carlos Alberto Guerra Filgueiras, CEO and
board president of Fanor will continue to serve as President.
“The opportunities that this transaction brings to Fanor are truly
exciting,” said Filgueiras. “We will become part of a global
organization that is at the forefront of education and shares our high
standards for academic achievement. This combination will accelerate our
growth as we integrate our innovative teaching methods with DeVry’s
world-class business practices and resources.”
Robert Lytle, education industry partner at The Parthenon Group, added,
“We view Brazil as one of the more attractive higher education markets
as the underlying demand dynamics should drive strong long term growth.
Brazil already possesses one of the highest proportions of market-funded
universities both in Latin America and the world.”
Hamburger concluded, “Fanor has an exceptional management team and
talented employee base and we welcome them into the DeVry family.
Importantly, both organizations share a commitment to high-quality
academic programs, successful student outcomes and have strong
integration track records. We look forward to working together to
realize the opportunities that exist in the business, including
geographic expansion, enhanced online offerings, and increased student
The acquisition of Fanor, which is subject to customary closing
conditions, is expected to be accretive to DeVry’s earnings beginning in
fiscal 2010. The transaction is not conditioned on financing and is
expected to close in April 2009.
About DeVry Inc.
DeVry Inc. (NYSE: DV) is the parent organization of DeVry University,
Advanced Academics, Ross University, Chamberlain College of Nursing,
Apollo College, Western Career College and Becker Professional Review.
DeVry University, which includes Keller Graduate School of Management,
offers associate, bachelor's and master's degree programs in technology,
healthcare technology, business and management. Advanced Academics
provides online secondary education to school districts throughout the
U.S. Ross University offers doctoral degree programs through its schools
of Medicine and Veterinary Medicine. Chamberlain College of Nursing
offers associate and bachelor's degree programs in nursing. Apollo
College and Western Career College prepare students for careers in
healthcare through certificate and associate degree programs. Becker
Professional Review, which includes Becker CPA Review and Stalla Review
for the CFA Exams, provides professional education and exam review for
accounting and finance professionals. For more information, visit http://www.devryinc.com.
Faculdades Nordeste S.A. (“Fanor”) is a leading provider of
postsecondary education in northeast Brazil. Founded in 2000, Fanor
operates four brands: Fanor, Area 1, FTE and Ruy Barbosa. These schools
offer undergraduate and graduate degree programs in business, law and
engineering and currently serve more than 10,000 students. Its five
campuses are located in Fortaleza, CE, and Salvador, BA.
Certain statements contained in this release concerning DeVry's
future performance, including those statements concerning DeVry's
expectations or plans, may constitute forward-looking statements subject
to the Safe Harbor Provision of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements generally can be
identified by phrases such as DeVry Inc. or its management "believes,"
"expects," "anticipates," "foresees," "forecasts," "estimates" or other
words or phrases of similar import. Actual results may differ materially
from those projected or implied by these forward-looking statements.
Potential risks, uncertainties and other factors that could cause
results to differ are described more fully in Item 1A, "Risk Factors,"
in the Company's most recent Annual Report on Form 10-K for the year
ending June 30, 2008 and filed with the Securities and Exchange
Commission on August 27, 2008.
Source: DeVry Inc.