McGraw-Hill and Cengage announced May 4 that they have mutually agreed to terminate their planned merger. McGraw-Hill said “the required divestitures would have made the merger uneconomical,” while Cengage cited “a prolonged regulatory review process and the inability to agree to a divestitures package with the US Department of Justice.” Under the terms of the merger agreement, which the companies have repeatedly called a “merger of equals,” neither company will pay a termination fee. Both the DOJ and the UK’s Competition Markets Authority said the companies would have to divest certain courses where they were the chief competitors before approval. […]
M&A
Bertelsmann Completes Acquisition of Pearson’s Final 25% Stake In Penguin Random House
As of April 1, Bertelsmann finalized their purchase of Pearson’s remaining 25 percent share of the Penguin Random House joint venture, for $675 million. (As a reminder, the enterprise value of that minority stake, including PRH’s debt, is $917.5 million.) Having paused a share buyback program that aimed to return some of that money to shareholders after spending £167 million, Pearson now says it “will retain the proceeds from the disposal…to further strengthen our short-term financial position” during the current crisis. Pearson previously held two seats on the PRH board, which are likely to be placed or retired. For now, […]
HarperCollins to Acquire Egmont Books UK, Egmont’s Book Business in Poland, and Schneiderbuch Germany
HarperCollins will acquire Egmont Books UK, as well as Egmont’s book business in Poland and Schneiderbuch in Germany, in a deal that is set to close on April 30. (Those units are run out of Egmont Publishing, which also operates the company’s magazines, rather than the Egmont Books division, which focuses on Cappelen Damm in Norway and Lindhardt & Ringhof in Denmark.) (May 1, 2020 update: Harper UK has completed the acquisition, for an undisclosed sum.) Egmont Books UK will operate as a standalone children’s division, and will remain in its offices for now. Egmont UK managing director Cally Poplak […]
People, Etc.
Allison Carney has joined Holt as assistant director of marketing. She was most recently marketing manager at Riverhead, Viking, and Penguin. Maia Sacca-Schaeffer has joined as assistant marketing manager; previously she was digital marketing & sales associate at Farrar, Straus. Kneerim & Williams agent John Butman died unexpectedly on Monday, March 23, from what appears to have been a heart attack. He was at home in Maine after a vacation with his family. The agency remembers him as, “A priceless agent, thinker, writer, and pal. He brought us his overflowing wit, intelligence, kindness, and joy, and we will miss him sorely.” […]
McGraw-Hill Cengage Merger Further Delayed As UK Announces Deeper Review
The UK Competition and Markets Authority (CMA) announced March 24 that it would conduct an in-depth review of the planned merger between McGraw-Hill and Cengage. The review, referred to as a Phase 2 investigation, is not expected to conclude before September; meanwhile, competition agencies in the US, Australia, New Zealand, and Mexico are also still reviewing the deal. In a report on the update, McGraw-Hill says, “The completion of the merger is subject to a number of conditions, including, among others, the receipt of approval from governmental entities. No assurance can be given that the required regulatory approvals will be […]
Corporate: Scholastic Closes DCs in Cost Cutting, Bloomsbury Acquires Zed, and More
Scholastic reported results for the third quarter ending February 29, and announced cost and service cuts due to the pandemic: “We are taking aggressive actions to reduce operating expenses throughout the company, including the temporary closing of warehousing and distribution centers, and a freeze on hiring, travel and other discretionary spending not directly tied to short-term revenue, while working hard to ensure the safety and well-being of our staff worldwide,” ceo Richard Robinson said in the release. Overall sales for the quarter were $373 million, up $13 million compared to a year ago. Trade sales were even stronger — at […]