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. 

Wall Street English has 35,000 professionals and university students in cities across China. Its parent company is Wall Street Institute, majority-owned by the Carlyle Group.

Carlyle had bought Wall Street English in 2005 for an undisclosed sum Brooke Coburn, Carlyle managing director, said that Wall Street Institute was a great example of the important role of growth equity in the global expansion of a company. He added that since their investment the company grew three times in revenue and the business expanded dramatically in China with the addition of 25 new facilities. 

Timothy F Daniels, chief executive officer of WSI, said that demand for English language instruction was rising in China and till date the company had barely scratched the surface of the opportunity in the massive country. He added that they were pleased the Pearson had agreed to purchase Wall Street English and take the business to the next level of success.

With its franchised and company-owned instruction centres, Wall Street Institute has provided instruction to more than two million students across 28 countries in Africa, Asia, Europe, Latin America and the Middle East. The company was established in 1972 and has international offices in Baltimore, Maryland in the US and Barcelona, Spain.

Wall Street English is expected to generate $70 million in sales this year, Pearson said.  The company registered a compound annual revenue growth of more than 40 percent between 2006 and 2008.

Pearson entered the ELT market in China with the acquisition of two companies that cater to the needs of adults and school and college students. It owns 27 training centres in Beijing and Shanghai.