Charlotte, NC, September 1, 2012 – Scale Finance LLC is pleased to announce its role as exclusive financial advisor and investment banker to The Education Center, Inc. (the “Company”), headquartered in Greensboro, NC, in the sale of substantially all of its assets to Park Street, LLC for approximately $6.8 million in total consideration. Scale Finance managed the sale process post-filing which resulted in the successful sale pursuant to Section 363 of the United States Bankruptcy Code.
The Company, in business since 1973, is a leading publisher and provider of instructional content to pre-K and elementary school teachers in the United States and selectively in Canada. The Education Center’s flagship publication, The MAILBOX magazine, is recognized by 98% of teachers nationwide, and the ideas and activities generated by the brand are currently used by two-thirds of all elementary school teachers. The Company’s product mix also includes E-books, interactive electronic whiteboards lessons, and original theme-based content available through a wide range of distribution channels, including home delivery, retail outlets, online subscription, email, and smart phone and tablet applications. On January 27, 2012, the Company filed a voluntary petition for relief pursuant to Chapter 11 of Title 11 of the United States Bankruptcy Code, Middle District of North Carolina (Greensboro Division), and had continued in possession of its assets and the operation of its business through closing. As a result of this transaction, the Company successfully discharged itself from substantial financial obligations, thereby emerging from bankruptcy with a more efficient operating structure.
“The Education Center has a great story as they steadily build their highly innovative and compelling digital offerings,” commented Scale Finance Managing Director, David V. Gilroy. “We enjoyed working with the Company’s terrific management team in ensuring a robust and carefully managed sale process and a successful outcome.”
In addition to adding over 40 new clients year to date in 2012, Scale Finance is also having an exceptionally strong year, closing major growth capital raises and M&A transactions. Completed deals year to date include capital raises for Northwest Companies, Enveniam, Inc., AtoZ Companies, The Coupon Doc, and Yodil, Inc.; and the sale of The Education Center, Inc. to Park Street.
About Scale Finance
Scale Finance LLC (www.scalefinance.com) provides contract CFO services, Controller solutions, and support in raising capital, or executing M&A transactions, to entrepreneurial companies. The firm specializes in cost-effective financial reporting, budgeting & forecasting, implementing controls, complex modeling, business valuations, and other financial management, and provides strategic help for companies raising growth capital or considering M&A/recapitalization opportunities. Most of the firm’s clients are growing technology, healthcare, business services, consumer, and industrial companies at various stages of development from start-up to tens of millions in annual revenue. Scale Finance LLC has offices throughout the southeast including Charlotte, Raleigh/Durham, Greensboro, Wilmington, Washington D.C. and South Florida with a team of more than 30 professionals serving more than 100 companies throughout the region.
