Lambuth President Bill Seymour met with faculty and staff Tuesday to update them on recent developments related to the school’s planning efforts.
He reminded them that in December, 2009 Lambuth University reaffirmed a Letter of Intent (LOI) with a management group who was seeking to acquire the institution. The LOI provided the management group exclusive rights to develop a definitive agreement.
Backed by private equity investors, this group has been working with the Lambuth administration and Board of Trustees to develop a program that maintained the land campus while adding new online degree programs. In March, 2010 the Board of Trustees approved the sale of University assets to this group pending the satisfactory negotiation of the final financial plan.
Coordination of this project also included the development of proposals that were submitted to SACS on April 15, 2010 paving the way for a change of governance and the addition of online degree programs hopefully in June, 2010.
On April 16th the University received word from the management group that they were unsuccessful in securing a key investor in the deal, and that their CEO had resigned from the company. With this deal over, the University was released from the exclusivity of the LOI.
Immediately, University administrators began contacting other known entities that had expressed interest in acquiring the school and they are in conversation with multiple groups at this time. One group has already made a visit to campus and is assessing the opportunity.
Dr. Seymour indicated that the immediate objective is to develop an agreement with a new company that will be very similar to what had already been organized – a move to a for-profit institution that is committed to operating the traditional land campus while adding new online programs that will enhance enrollment and funding for the whole University.
Given all of the due diligence work that had been completed on the previous deal, Seymour believes the school is in position to move ahead quickly. He also stated, “There is significant interest in Lambuth University. We have good reason to be hopeful that we will identify a firm that will be a great fit for our school.”