Chatham Asset Management, which kicked off the bidding to take RR Donnelly private and already owns just under 15 percent of Donnelly’s stock, offered a fully-financed bid to acquire the printing company for $9.10 per share in cash. They say their bid is worth approximately $48 million more than the deal from Atlas Holdings (which bought LSC Communications in bankruptcy). Chatham also filed suit in a Delaware Chancery Court, asking for the termination fee due Atlas if they do not prevail and certain other provisions to be declared unenforceable. Chatham indicated that they will pay $9.34 a share if the termination fee […]
M&A
Spotify to Acquire Findaway and Storytel Will Buy Audiobooks.com
Two big acquisitions will fuel hopes for players of scale to challenge Audible’s dominance in core markets. Spotify will acquire distributor Findaway as part of their goal to develop a meaningful presence in the audiobooks market, pending regulatory approval. The deal is expected to close in the fourth quarter of 2021; the terms were not announced. Findaway bills itself as the “world’s largest audiobook distributor,” and is a key player in distributing digital audiobooks to Apple, Google, Overdrive and others. The company also provides tools for independent authors to produce and distribute audiobooks and sells audiobook players to brands. “The […]
Another Sale at Follett: Management Leads Buyout of Baker & Taylor
Follet has sold Baker & Taylor to a private investment group, led by president and CEO Aman Kochar. The disposal follows the sale of Follet School Solutions to Francisco Partners at the beginning of September. Follet bought Baker & Taylor and Bookmasters from Castle Harlan in 2016. B&T has slimmed down since that transaction, most notably with their exit from the business of wholesaling books to retailers in 2019. Kochar says in the announcement, “This is a pivotal and exciting time for Baker & Taylor. As an independent entity, we look forward to leading with our expertise and legacy and […]
Sourcebooks Acquires B.E.S. Publishing
Sourcebooks has acquired B.E.S. Publishing from Peterson’s Publishing, in a deal that closed November 1. The deal includes more than 800 B.E.S. titles, including adult nonfiction and children’s fiction and nonfiction. B.E.S. stands for Barron’s Educational Series; Peterson’s had purchased B.E.S. a little less than two years ago from Barron’s. The line has been distributed by Two Rivers, and accounts should continue to order ttitles through Ingram Content Group through the end of 2021. “The addition of B.E.S. adds breadth, variety, and depth to our rapidly expanding children’s and adult nonfiction catalog,” said Dominique Raccah, Sourcebooks ceo and publisher. “We […]
An Odd Story of M&A and Antitrust
This isn’t what you are thinking. Rather, on Wednesday morning, RR Donnelly announced the board has accepted an offer from Atlas Holdings to take the company private. The bid comprises about $620 million to buy out the equity, and takes on about $1.4 billion in debt. Atlas topped an offer made in October by Donnelly’s largest bondholder (as well as owner of about 15 percent of their stock) Chatham Asset Management, which quickly said they were prepared to offer a higher bid, subject to various contingencies. Not noted in the initial coverage — even from the WSJ — is that […]
S&S “Committed” to Fight DOJ and “Will Carry On”
In a memo to employees on Tuesday, Simon & Schuster president and ceo Jonathan Karp echoed Penguin Random House’s statement that they will fight the Department of Justice’s lawsuit to block the merger of the two houses. “Penguin Random House is determined to fight vigorously to bring this transaction to fruition and we will be doing all we can to help in those efforts,” he wrote. Additionally, “We are committed to working together with PRH to fight this lawsuit.” (The DOJ suit names ViacomCBS as a defendant, alongside Bertelsmann and PRH.) Karp writes, “Notably, DOJ has not alleged that the […]