FT owner Pearson buys English language training firm from Carlyle

Publishing group Pearson, which owns London-based Financial Times and Penguin Books, has acquired Wall Street English, one of the top Chinese English language-training (ELT) companies. from private equity firm carlyle The $ 145 million cash deal will consolidate Pearson's presence in a critical growth market. 

Pearson PLC is the world's largest educational publisher and  plans to combine Wall Street English's training centres for adult learners in seven Chinese cities with its Longman Schools business to gain a leading position in the ELT market in China. 

John Fallon, chief executive of Pearson's International Education business said that

China is central to its plans to build on its position as the world's leading provider of English language learning solutions. 

He added that Wall Street English is a successful company with high quality educational programmes, strong management, good cash flow and margins an excellent growth prospects and the acquisition would help establish Pearson as a leading player in one of the most exciting and dynamic education markets in the world.  

The acquisition of Wall Street English would help Pearson  enhance its adjusted earnings per share in 2010 and generate a return above Pearson's cost of capital from 2011. The company plans to retain the Wall Street English brand and would invest in additional centres across China.