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May 28 – June 4, 2012 Edition McGraw-Hill Takes More Steps to Spin-Off Education Unit NEW YORK/ June 1, 2012 — The McGraw-Hill Companies (NYSE: MHP) today announced further steps to establish the new, independent company, McGraw-Hill Education, by the end of this year. The process of creating this new entity requires multiple changes across operating and support functions to both separate the education segment from The McGraw-Hill Companies and to stand up McGraw-Hill Education as an independent, digital learning and education services organization. These moves will also facilitate the process of onboarding a new Chief Executive Officer of McGraw-Hill Education as the search enters its final phase.
To continue the process of building a world-class team to lead the new education company, the Corporation is appointing Patrick Milano, currently Executive Vice President and Director of the Program Management Office of the Corporation’s Growth and Value Plan, to the new position of Chief Financial Officer and Chief Administrative Officer of McGraw-Hill Education. Mr. Milano, a multi-year veteran of McGraw-Hill, including in the education segment, has successfully led the separation phase of the Growth and Value Plan since last year. In this new role, he will be responsible for Finance, Manufacturing, Distribution and IT, reporting to Jack Callahan, Chief Financial Officer of The McGraw-Hill Companies, until the new Chief Executive Officer of McGraw-Hill Education is appointed. Joe Micallef, currently Senior Vice President, Finance and Operations, will work closely with Mr. Milano on standing up McGraw-Hill Education before retiring following a very successful career at the company.
Concurrent with these moves, Robert Bahash, the President of McGraw-Hill Education, will retire after 37 years of distinguished service with The McGraw-Hill Companies, as previously anticipated.
David Stafford, currently Vice President and Associate General Counsel of The McGraw-Hill Companies, will become General Counsel of McGraw-Hill Education and will also play a key role building a public company legal team and preparing for the spin-off.
Maryellen Valaitis, currently Head of Human Resources in the education segment, will become Vice President of Human Resources of the new company, thus providing important continuity in ensuring McGraw-Hill Education has the best possible talent in the education sector.
Vineet Madan, currently Senior Vice President of Strategic Services, will continue to lead strategic planning as McGraw-Hill Education enhances its leadership of digital and personal learning innovation.
Bruce Marcus, currently Chief Digital and Information Officer of McGraw-Hill Education, will continue to lead the IT team and the higher education digital product development unit.
The business unit management team of McGraw-Hill Education will be led by the following talented presidents: Brian Kibby, President, Higher Education; Dan Caton, President, School Education Group; Philip Ruppel, President, Professional; Ellen Haley, President, CTB/McGraw-Hill; and Talia Griep, President, International. All will report to Harold McGraw III, Chairman, President and Chief Executive Officer of The McGraw-Hill Companies, until the new Chief Executive Officer of McGraw-Hill Education is appointed.
These moves underscore the progress already announced regarding the Growth and Value Plan, including the ruling received from the Internal Revenue Service agreeing to the tax-free status for the spin-off of McGraw-Hill Education, and the ongoing preparations to file the Form 10.
“These are important steps as we continue the process of creating the new McGraw-Hill Education Company,” said Mr. McGraw. “This team has an exceptional record of leadership, substantial international credentials, significant experience in new technologies and strong operating skills, which, combined with their steadfast commitment to improving education performance, makes them highly qualified to lead McGraw-Hill Education in the new era of global digital learning. It is because of their creativity and dedication that McGraw-Hill Education is an outstanding leader in the new adaptive and personalized digital platforms that are increasingly engaging and exciting students to deliver better educational outcomes.
“In addition, Pat Milano has been successfully leading the separation and stand up process for McGraw-Hill Education under the Growth and Value Plan. In his new role as Chief Financial Officer and Chief Administrative Officer of McGraw-Hill Education, Pat will ensure close alignment and effective allocation of resources as we establish two powerful new companies, McGraw-Hill Education and McGraw-Hill Financial, later this year.”
“I want to extend my thanks to Bob Bahash for his dedication and considerable contributions to McGraw-Hill,” Mr. McGraw added. “He has been a very valuable member of the management team for so many years and his recent leadership of McGraw-Hill Education has been very important as it transitions to becoming an independent company.” Mr. Bahash was previously the Corporation’s Chief Financial Officer, worked as Senior Vice President of Finance and Manufacturing, and served in other leadership positions at McGraw-Hill.
“I also want to thank Joe Micallef for his wise counsel, commitment and professional service to McGraw-Hill over the years.”
About The McGraw-Hill Companies:
McGraw-Hill announced on September 12, 2011, its intention to separate into two public companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Indices, Platts energy information services and J.D. Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.