|Volume No. 1 Issue No. 39 - Wednesday March 19, 2003
| DeVry Inc. to Acquire Leading Medical and Veterinary School |
Acquisition Expands Education Platform into Medicine and Health
DeVry Press Release
OAKBROOK TERRACE, Ill. (March 19, 2003) - DeVry Inc. (NYSE:DV), an
international higher education company, announced today it has signed
a definitive agreement to acquire Ross University, the operator of
Ross University School of Medicine and Ross University School of
Ross University is one of the world's largest
providers of medical and veterinary education with more than 2,500
Ross University's medical and veterinary campuses are located in the
Caribbean countries of Dominica and St. Kitts/Nevis. Students of Ross
University are almost all citizens or permanent residents of the
United States, who are eligible for financial assistance under Title
IV of the Higher Education Act. Ross' curricula follow the models used
in U.S. medical and veterinary schools.
While pursuing their doctor of medicine (M.D.) or doctor of veterinary
medicine (D.V.M.) degrees, students complete their basic science
curricula at Ross campuses, and complete their clinical rotations at
teaching hospitals and veterinary schools in the United States.
University currently employs 90 permanent faculty members, recruited
primarily from U.S. medical and veterinary schools. Ross graduates
include over 4,500 practicing physicians and veterinarians in the
Consideration for the acquisition will be approximately $310 million
in cash. At current operating levels, this acquisition will be
immediately accretive to earnings per share and have a positive impact
on operating margins and cash flow.
Subject to completion of customary
regulatory approvals, the acquisition is expected to close during
DeVry's fiscal fourth quarter ending June 30, 2003.
For the year ended December 31, 2002, Ross had revenues of
approximately $62 million, EBITDA of approximately $25 million, and
net income of approximately $18 million. Ross is currently owned by affiliates of Leeds, Weld & Co. and J.W. Childs Associates, private equity investment firms
located in New York and Boston, respectively.
"We are very excited about the opportunities that this key acquisition
presents for DeVry. The acquisition of Ross University gives the
company entry into an attractive and growing sector of the higher
education market - medicine and health sciences," said Dennis J.
Keller, DeVry Inc. chairman and co-chief executive officer.
"Diversification of our curricula in this manner will help us maintain
our leadership position in career-focused education. Most
importantly, Ross brings a strong institutional focus on educational
quality, and its students reflect the passion for excellence and
desire to excel that we believe defines all DeVry students."
Ross University will become the third division of DeVry Inc., joining
DeVry University and Becker Conviser Professional Review.
Ronald L. Taylor, president and co-chief executive officer of DeVry
Inc., said, "Ross University fits our acquisition criteria with its
quality programs and faculty along with excellent financial
In the 25 years since its founding, Ross University has
enjoyed a strong history of growth to earn its position today as one
of the largest providers of medical and veterinary education. Ross
also generates excellent free cash flow and operates in a market with
very favorable dynamics."
The Council on Graduate Medical Education has estimated that by 2010,
there will be a shortage in the United States of 50,000 physicians.
With only 16,500 U.S. medical school graduates available for the
24,500 new residency positions in the United States each year, Ross
University helps to meet the demand for highly-skilled medical school
According to the Association of American Medical Colleges (AAMC),
approximately 34,000 individuals applied to medical schools in the
United States in 2002.
Because of the limited number of openings at
U.S. schools, only about half of those who applied were accepted. The
AAMC expects medical school applications to grow by
4 percent to 6 percent in 2003.
Timothy E. Foster, chairman and chief executive officer of Ross
University, said, "We view this as an excellent fit, as both DeVry and
Ross provide career-focused education and share a fundamental
commitment to quality education.
We believe our leading medical
programs are very complementary to DeVry's focus, particularly its
professional-level offerings in business, technology and management.
We are very pleased to become a part of this well-respected
Bank of America, N.A. will provide financing for the acquisition.
Credit Suisse First Boston acted as the exclusive financial advisor to
DeVry in the transaction.
SunTrust Robinson Humphrey acted as the
exclusive financial advisor to Ross University. For more information
about Ross University visit and
DeVry will hold a conference call on Thursday, March 20, 2003 at 7:30
a.m. central time to discuss this announcement. To participate, please
dial 800-937-6814 (domestic) or 706-634-1136 (international) several
minutes prior to start time.
A replay of this call is available until
April 2, 2003 by dialing 800-642-1687 (domestic) or 706- 645-9291;
Conference ID 9263186. In addition, DeVry will broadcast this call
live via web cast through its investor relations website.
participate using the web cast, log on to .
DeVry Inc. (NYSE: DV) is the holding company for DeVry University and
Becker Conviser Professional Review. DeVry University offers
associate, bachelor's and master's degree programs in technology,
business and management.
Becker Conviser Professional Review is a
leading provider of preparatory coursework for the certified public
accountant, certified management accountant and chartered financial
DeVry Inc. and its divisions are based in Oakbrook
Terrace, Ill. For more information about DeVry Inc., visit