National University Approves Purchase of College of Oceaneering
Trustees Name President Lee as Chancellor of Newly Established System
October 24, 2001
La Jolla, CA --The Board of Trustees for National University has approved a plan to acquire of the College of Oceaneering in Wilmington California, and named National University President Dr. Jerry C. Lee chancellor of a newly organized National University System.
Under the new system, the College of Oceaneering will operate as a separate but affiliated entity. An immediate search will be conducted for a president to oversee operations of the College of Oceaneering. That individual will report to Chancellor Lee, who will continue to serve as president of National University.
The College of Oceaneering is a private institution, which is accredited by the Accrediting Commission for Community and Junior Colleges of the Western Association of Schools and Colleges, and provides associate of science degrees in marine technology. Founded in 1967, it has educated more than 8,500 students and graduates close to 300 entry-level professionals per year in the fields of hyperbaric medical technology, nondestructive testing technology, underwater welding technology, and marine technologies.
Its Los Angeles Harbor facility is considered one of the most respected diver training centers in the world, educating a workforce that is in high demand among offshore energy exploration, marine development industries and engineering firms throughout the world. The College of Oceaneering is a key supplier of graduates to more than 250 marine construction firms in the United States, and up to 350 diving contractors internationally. Additionally, it provides specialized training for various law enforcement search and rescue teams.
"With energy needs rising, with port facilities expanding throughout the world, and with the sudden demand for higher security on ships and in harbors, economies will increasingly rely upon the graduates of such programs," said Dr. Lee. "National University's financial strength and reputation for educational innovation will facilitate expansion of these programs to meet future demand, including the development of facilities in San Diego."
According to the Association of Commercial Diving Educators, marine construction and inspection is a billion-dollar-a-year industry with more jobs currently than there are entry-level graduates to fill them.
Inspection specialists, who utilize still photography, videography, ultrasonic testing and magnetic particle inspection both underwater and topside, are important in certifying the safety of ships, reservoirs, bridges, warehouses, office buildings and other structures. They offer vital services in areas where seismic activity frequently occurs, and will likely contribute significantly in the widening defense against terrorism.
Hyperbaric medicine involves therapies utilizing 100 percent oxygen at pressures up to three times greater than normal atmospheric pressure. Its benefits extend beyond the diving community, and can enhance the healing process of numerous conditions through therapies such as hyperoxygenation, neovascularization, hyperoxia, and vasoconstriction, which has proven extremely beneficial to burn victims.
According to Dr. Lee, the three programs at the College of Oceaneering provide ideal springboards to some of the degree programs that National University offers, particularly in the fields of nursing, criminal justice, business and technology.
"This is an excellent fit from many perspectives, consistent with our mission of lifelong learning, which will prove mutually beneficial to both institutions as they join together," said Dr. Lee.
National University's plan to purchase the College of Oceaneering continues a pattern of dramatic growth over the past four years, in which enrollment of full time equivalent students has increased at an annual average of 8.4 percent, financial resources have increased by 150 percent, and National has become California's second largest private nonprofit university.
In May, Standard & Poor's and Moody's, the nation's two most influential credit rating agencies, noted National University's strengthening market position and exceptional operating performance by upgrading the University's credit rating. S&P assigned an 'A+' issuer credit rating to National, citing net tuition revenue growth that exceeded 11 percent over the past two years, operating margins averaging about 33 percent over the past three years, and threefold growth in cash and investments over the past five years. Moody's awarded an 'A1' rating based upon growing financial resources with modest leverage, exceptional operating performance, strong student body growth, and a solid niche in the rapidly growing nontraditional adult education market.
In the past 30 months, National University has completed more than 200,000 square feet of new construction on educational facilities throughout California. In June, it purchased the 75,000-square-foot headquarters building of Jenny Craig Inc. in La Jolla. In November it will open a new 14,000-square-foot academic center in Stockton.
National's impressive track record played a decisive role in the College of Oceaneering's decision to sell, according President and CEO John Schwitters, who is a co-owner of the College, along with Vice President and Director Alek Haidos.
"After several months of negotiations, I am convinced that President Lee and National University provide the College of Oceaneering with its best opportunity for future growth," said Mr. Schwitters. "I'm certain that National will meet the important obligations this college has to industry, law enforcement, the military, and the various ports and communities that we have traditionally served."