The WSJ names the “book retailer” that made offers to buy Barnes & Noble last spring that fell apart on June 19, as described in Demos Parneros’s defamation and breach of contract lawsuit against the retailer, and the company’s answer to those charges and countersuit. “People familiar with the situation say it was WH Smith PLC, a UK retailer that sells books, stationery and other products.” Though the Journal does not mention it, that makes sense contextually given where WH Smith turned next: Their deal announced October 31 to acquire US travel electronics retailer InMotion for $198 million. In announcing […]
M&A
Quad/Graphics Buys LSC in Major Consolidation of Printing
The two largest North American printers are becoming one: Wisconsin-based Quad/Graphics will buy its primary competitor, print services provider LSC Communications (the print spin-off from RR Donnelley). The all-stock deal is valued by the company at about $1.4 billion (perhaps expressing the enterprise value, since the value of the stock exchange looks to be more like $380 million). LSC shareholders will receive 0.625 shares of Quad Class A common stock for each LSC share they own, paying what’s deemed a premium of 34 percent. The acquisition, not expected to close until mid-2019 and pending shareholder and regulatory approval, would nearly […]
WH Smith Comes to the US with InMotion Acquisition; Penguin Random Takes Majority Stake at Companhia das Letras
UK retailer WH Smith is buying Jacksonville, FL-based travel electronics retailer InMotion for $198 million. InMotion sells electronics including headphones, earbuds, mobile power and portable speakers at 43 US airports, further expanding WH Smith’s growing travel division. Perhaps more significantly, WH Smith says the acquisition will “support the launch and growth of WH Smith’s airport format in North America,” signaling their intention to become a bigger player here. InMotion will operate as a subsidiary of WH Smith. They are forecasting 2017 sales of $166 million, and the deal is expected to close by year end. Separately, ss Penguin Random House […]
Wiley Buys Learning House for $200 Million
Wiley announced Tuesday it has signed a definitive agreement to acquire education services provider Learning House from Weld North Holdings for $200 million in cash. The transaction is expected to close on or around November 1. The Louisville, KY-based Learning House provides online program management (OPM) services for colleges and universities, along with professional development services for teachers; and learning solutions for corporate clients. 2018 sales for the unit are expected to be roughly $70 million, up 17 percent from last year. Wiley ceo Brian Napack says in the announcement, “Learning House is a dynamic growth company and we are thrilled […]
Kaplan to Swallow Barron’s Test Books
Kaplan Test Prep has acquired key assets of longtime rival Barron’s Educational Series, including the test prep, study aid, and foreign language assets, as well as the Barron’s brand name. The acquisition comprises about 650 of Barron’s more than 2,000 titles, also including their reference, business, and law titles. As Newsday notes, “The purchase combines two of the oldest and best-known brands in educational services and test-prep books in a market that is becoming increasingly competitive.” Terms of the transaction were not disclosed. Following the merger, Kaplan’s new assets will still carry the Barron name, operating as a distinct brand. […]
Quarto Has Better Sales, Still with Big Loss; Bertelsmann to Buy OnCourse Learning
Quarto reported half-year results, with sales showing some improvement, as revenues rose $6 million to $56.2 million. Some of that gain reflects a shift in the “seasonal split of co-edition revenues, with a higher percentage than normal of expected full-year revenues achieved in the first half.” Their operating loss of ($7 million) was slightly improved from last year’s ($7.6 million), though the after tax loss of ($6.7 million) was higher than last year’s ($5.2 million), and is a poor result by any objective measure. The company’s lightly-traded stock is headed towards a new all-time low following the news. Though not […]