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McGraw-Hill plans to split into 2 companies

September 12, 2011 12:00:00 AM PDT
The McGraw-Hill Cos. is splitting into two companies- one focused on education, the other on capital and commodities markets.

McGraw-Hill Markets will retain the Standard & Poor's credit rating company as well as the market research firm JD Power and Associates.

McGraw-Hill Education will be a new company focused on education services and digital learning, while McGraw-Hill Markets will retain S&P and J.D. Power and Associates, a market research company.

The markets business expects 2011 revenue of about $4 billion, with almost 40 percent of it from international markets. The education segment is forecasting revenue of about $2.4 billion for the year.

The company said the split will create more "sharply defined," focused companies that will make it easier for investors to assess their value.

McGraw-Hill's current president and CEO will lead the markets business. A search is underway for a person to lead the education business.

The Associated Press contributed to this story.