Higher Education Company to Expand

(The Pittsburgh Tribune, December 2, 2009) Education Management Corp. pledged on Tuesday to create 600 local jobs over the next three years, including many at a new data center to be built in western Allegheny County.

In exchange for $6 million in state and county incentives, the Downtown company also promised to retain its existing 2,500-plus workers in the Pittsburgh area.

Education Management plans to construct a $23 million data center, most likely in Robinson but certainly within Allegheny County. The location and other project details will be finalized in the spring, but the bulk of the 600 new jobs will be there.

The data center is part of $30 million capital spending plan the company disclosed yesterday. Plans include an expansion of the headquarters Downtown, where Education Management employs more than 900 people.

The company plans to expand its online, higher-education facility in the Strip District, which provides classes online for about 13,000 students. About 1,500 work at the site.

Founded in 1962, Education Management operates proprietary schools across North America, including the Art Institute of Pittsburgh, which employs about 350. Its 93 locations in 28 states and Canada provide degrees in the arts, information technology, culinary and other disciplines.

Education Management employs about 20,000 workers companywide, including part-time staff. Its schools have more than 136,000 students.

"For the past four decades, we have grown to become one of the nation's premier providers of higher education," said CEO Todd Nelson. "I am pleased our growth can continue."

Pennsylvania is providing $5.75 million in job-creation tax cuts, opportunity grants and infrastructure assistance. Allegheny County is providing $250,000 in community development block grants and job training assistance.

The company went public in early October, raising more than $353 million in proceeds from its stock offering. Shares closed yesterday at $21.72, up 54 cents.

Education Management had total revenue of about $2 billion in the fiscal year ended June 30, a 19 percent increase from the year earlier. Earnings jumped more than 61 percent to $104 million.

 

By Thomas Olson