August 6, 2009 (FinancialWire) — Career Education Corp. (NASDAQ: CECO) said it has agreed to acquire the outright rights to the Le Cordon Bleu brand in the education services field for the U.S. and Canada for around $135 million.

The estimated purchase price of $135 million was comprised of $25 million in cash, 30 months of earn-out payments from the purchase date equal to six percent of Culinary Arts revenue, and three million shares of CEC common stock.

Career Education said the acquisition will result in annual operating expense savings of $15 to $20 million from the elimination of royalty payments.

As a part of the transaction CEC has also acquired the right of first refusal to purchase all non-acquired brand rights and operations of Le Cordon Bleu International in the event LCBI proposes to sell such rights and operations.

CEC has had a licensing agreement with Le Cordon Bleu International for the past 10 years, which included the payment of royalty fees as a percentage of Culinary Arts revenue.

Hoffman Estates, Illinois-based Career Education operates colleges, schools and universities that offer a range of career-oriented disciplines. The company has more than 75 campuses that serve students in the U.S. and in France, Italy, and the United Kingdom, and offer doctoral, master’s, bachelor’s and associate degrees, and diploma and certificate programs.

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