AlixPartners, Career Education Honored by M&A Network
AlixPartners and Career Education Corporation, a provider of postsecondary education programs and services, have been honored by the Global M&A Network, sharing the organization’s Turnaround Atlas Award for “Corporate Turnaround of the Year Middle Markets” and “Team of the Year.”
The AlixPartners team was led by Darin Facer and Keith Gillespie, managing directors in the firm’s Enterprise Improvement group. Accepting on behalf of Career Education was President and CEO Scott W. Steffey, who also received the “2014 Turnaround Leadership Achievement Award.”
AlixPartners and Career Education partnered to successfully execute a turnaround plan that saw a reduction of operating expenses by $270 million and an improvement of net cash flow of $118 million, all within a 12-month period. As of Dec. 31, 2013, these actions were seen as preserving employment for about 9,075 employees (more than 5,000 full-time and nearly 4,000 part-time) – jobs that likely would have been lost had the company not undertaken its plan – and importantly, continuing educational opportunities for Career Education’s more than 50,000 students.
“As the result of the many changes we’ve put into place,” said Steffey, “we’ve been able to implement operational efficiencies that have allowed us to right-size our infrastructure while still investing in high-priority areas, such as our innovative educational technology and the development of new and improved career-focused educational programs. We’re indebted to AlixPartners for the role they played in helping us get to this point.”
Said Facer, “We’re very proud of the fact that we’ve been able to partner with Career Education to dramatically improve its financial and operational competitiveness, especially given the continued and significant pressures facing this industry. We’re particularly proud of the company’s renewed focus on delivering an exceptional educational experience to the thousands of students it serves throughout the U.S.”
Global M&A Network honored winners in 48 awards categories. The winners were selected independently based on identifiable performance criteria.