KKR officially announced after the close of the stock market on Monday that they will acquire Simon & Schuster from Paramount, for $1.62 billion, in an all-cash transaction, pending regulatory approval. S&S will become a standalone private company with Jonathan Karp remaining as president and ceo and Dennis Eulau continuing as coo and cfo. “All of the executives at Simon & Schuster who met with KKR came away from those conversations impressed with the depth of KKR’s interest in our business and their commitment to helping us grow, thrive and become an even stronger company,” Karp said in a release. […]
M&A
KKR Tipped As Likely Acquirer of Simon & Schuster For “About $1.65 Billion”
Private equity firm KKR has long been considered the leading contender among bidders for Simon & Schuster and the WSJ reports late Thursday that the investment firm is in “advanced talks” to buy the publisher, “for about $1.65 billion, according to people familiar with the situation.” KKR is believed to have bid the first time S&S was up for sale in 2020 as well, though the underbidder then was Vivendi — which had not secured control of Lagardere at the time. Harper Collins ceo Brian Murray testified last August that their bid in 2020 “was not close” to Bertelsmann’s $2.175 […]
August Auguries: The S Stands for Sale
Coming truly full circle, the latest round of bids for Simon & Schuster were due on Tuesday, August 1 — on the one-year anniversary of the beginning of the antitrust trial in which DC District Court Judge Florence Pan wound up enjoining the planned $2.175 billion sales of S&S to Penguin Random House. While it was a major event in book publishing, history will remember August 1, 2023 at the same E. Barrett Prettyman Courthouse instead, since that is the day that former president Donald Trump was indicted on four counts connected to his attempts to overturn the results of […]
Vivendi Investigated For Allegations of Premature Involvement with Lagardere
Following media reports alleging that Vivendi violated EU rules by violating its “standstill” agreement and engaging in Lagardere’s business affairs prior to the closing of the merger, the European Commission “has decided to open a formal investigation.” They note that, “An opening of a formal investigation does not prejudge its outcome.” But, as EC antitrust head Margrethe Vestager states in the release, “At this stage, the Commission has gathered sufficient elements to open a formal investigation to determine whether Vivendi has complied with our procedures.” She notes: “Our ex-ante merger control regime, requires that companies notify transactions with an EU […]
Acquisitions: Norwood House Press
Classroom and library publisher Rosen Publishing Group has acquired Norwood House Press, effective August 1. Norwood House has 2000 titles and will continue to operate under its name with its existing team. Current president of Norwood Patti Hall will retire. She says in a release, “We are so pleased to place our independent, family-owned business with Rosen, another independent family-owned business…We understand and are excited that Rosen shares that commitment and will continue to grow and expand on that mission.” Ken Katula, ceo and president of Rosen Publishing Group says, “Rosen ownership and staff have long admired Norwood House Press… […]
KKR Selling RBmedia to H.I.G. Capital
KKR has reached a deal to sell audiobook publisher RBmedia to private equity firm H.I.G. Capital, the WSJ first reported, at an enterprise value of more than $1 billion (including the actual purchase price, plus assumed debt, which could be considerable). In March, when PE Hub said KKR was readying the sale, a “source” said the private equity firm was aiming for a sale at up to $2 billion (which would have been an aggressive 16 to 20 times EBITDA). The deal is expected to close in the fourth quarter. The WSJ reports that KKR had paid about $500 million […]