Following Courier Corp.’s definitive merger agreement with Quad/Graphics, on Tuesday morning competitor RR Donnelly made a higher, unsolicited buyout bid, offering $23 a share — $2.50 more per share (or approximately $15 million higher) than the Quad/Graphics payment. Already facing the typical shareholder “investigations” over the Quad/Graphics merger, Courier announced Wednesday morning that the board will “conduct negotiations and discussions with Donnelly.” They have already made the logical conclusion that Donnelly’s offer is “reasonably likely to result in a ‘Superior Proposal'” as covered in their Quad/Graphics agreement. Courier can break off that deal but would have to pay a $10 million termination […]
Finance
Announcements: Oyster Adds Harry Potter, R&L Buys Chase’s
eBook subscription service Oyster announced on Wednesday morning that they have added the Harry Potter series to their collection, along with 3 Hogwarts Library titles. Amazon first licensed the Potter books from Pottermore for borrowing in May 2012, originally on an exclusive basis “at least until 2014,” for inclusion in their Kindle Owner’s Lending Library across five languages. When the company launched their broader ebook subscription service Kindle Unlimited in July 2014, the Potter books were featured prominently in that program as well. Chase’s Calendar of Events, a fun, quirky property databasing all manner of holidays, daily observances and commemorations that […]
Publishing Technology Realigns Revenues, Negotiates with New Investor
Software and services provider Publishing Technology announced that their recognized revenues and operating loss for 2014 will be “materially below market expectations.” One part was planned, as the company implemented a realignment of revenue recognition that reduces 2014’s results and will boost sales and margins in 2015 and 2016. The second part, however, is attributed to “one major advance project, the scope of which has changed since inception.” Separately, the company said it “is in early stage discussions with an overseas third party” interested in making “a substantial investment” in Publishing Technology. They are discussing the sale of “a considerable minority interest,” via the issuing […]
With No Buyers, Egmont Will Simply Close US Publishing Division
After putting Egmont USA up for sale last October, parent company Egmont Publishing announced that it “has decided to close the office, effective from January 31,” since “attempts to sell” the unit “have not resulted in any final agreements.” January 30 will be the last day of employment for Egmont USA staff. But they will issue their spring 2015 list even without local staff, and their books will continue to be available through their distributor Random House. (Their spring 2015 catalog lists 10 titles for publication.) Six jobs will be eliminated when the US office closes. And recent PM deal reports […]
Barnes & Noble Retail CEO Mitch Klipper To Retire (But Stay On As Real Estate Advisor)
Barnes & Noble’s chief executive for the retail group, Mitchell Klipper, will retire from his role on May 2 (the end of BN’s 2015 fiscal year) after more than 28 years with the company, though he will stay on with the company as special advisor on real estate and other matters through May 3, 2019, at an annual base salary of $400,000. A search for Klipper’s successor is underway, and he will have a hand in the selection process. BN chairman and founder Leonard Riggio said in the announcement: “Mitchell Klipper’s contributions to Barnes & Noble have been nothing short […]
Quad/Graphics to Acquire Courier for $129 Million In Cash and $130 Million In Stock
On Friday, in the ever-consolidating printer sector, Quad/Graphics announced an agreement to acquire Courier Corp. for $129 million in cash and approximately 4.8 million shares of stock. Quad/Graphics says the deal “accelerates [its] three-year strategy to transform its book platform, which the company announced earlier this week.” The deal is expected to close by the middle of the year, and Quad/Graphics says they are paying “less than five times adjusted EBITDA after taking into account anticipated synergies.” Courier’s James F. Conway III will join Quad/Graphics as president of the book division. Courier’s stock rose by about a third on Friday, to close […]