Bloomsbury’s latest strategic acquisition is professional and academic publisher Tottel, based in the UK and Ireland, to be bought for 9.96 million pounds. They will rename the unit Bloomsbury Professional. In the fiscal year ending in February, Tottel had sales of 6.25 million pounds, operating profit of 0.93 million pounds, and EBITDA of 1.19 million pounds. The company says: “Bloomsbury has identified academic and professional publishing as a growing niche sector. The proposed acquisition of Tottel fulfils a strategic objective of Bloomsbury in pursuing opportunities in this market and follows from the acquisitions of Methuen, Berg Publishers, and The Arden […]
Finance
Perseus Cuts Jobs, Imposes Furloughs
Perseus Books Group ceo David Steinberger announced “a reduction in staff” to employees last Thursday, along with “a summer furlough program, in order to limit the size of the reduction” with employees taking off no more than six unpaid days (including two extended holiday weekends). Steinberger also reported that “the senior leaders of the company have accepted a more significant compensation reduction to help prevent the company and our people from greater cuts.” Steinberger says “approximately 20 people are leaving the company” with “most reductions” coming from the company’s publishing units rather than the distribution services group. He indicates the […]
Arcade Files for Chapter 11 Protection
Jeannette Seaver filed for bankruptcy protection for Arcade Publishing last week, with assets of $4.5 million and liabilities of $6.3 million. The company owes Little, Brown almost $500,000 for a loan and distribution services. The filing, as quoted by Crain’s, says that “the challenges of a small, independent publisher were made especially difficult by the current economic climate. For the past several months since the death of the Debtor’s president, Richard Seaver [who died in January] the Debtor has struggled in an effort to reorganize and seek investors. The loss of Mr. Seaver coupled with the ongoing financial issues in […]
Stake in Spain's Santillana In Play; Pearson, Cengage and Oxford Among Likely Bidders
The FT names Infinitas Learning (what used to be the education division of Wolters Kluwer) as another prospect interested in Santillana, called the “market leader in school textbooks in Spanish-speaking Latin America.” Owner Prisa could “sell up to 30 per cent of the business in a deal that could fetch up to ¬360m ($512m)” as they restructure their debt. The paper adds that “owning a stake in Santillana would fit with Pearson’s expansion into educational publishing outside the US, where the group is twice the size of any of its competitors.”FT
Screen-Maker PVI to Acquire E Ink for $215
Here’s a sign of the actual (and anticipated) growth of the market for e-readers: Prime View International, the company the manufactures the screens for both Kindle and the Sony Reader, is buying E Ink. “The new company will expand capacity and develop improvements for ePaper display screens that are easy on the eyes, long-lasting, and highly portable.” (PVI bought Philips Electronics’ ePaper business in 2005.) Interestingly, the company quotes in their press release iSuppli analyst Vinita Jakhanwal, saying “the market for electronic book devices such as the Sony Reader and Amazon Kindle is forecasted to grow from 1.1 million units […]
HMH Parent Aims to Swap Equity for Debt
The Irish Independent cite says Houghton Mifflin Harcourt parent company Education Media & Publishing Group, just like the ailing auto giants, is “on the cusp of finalizing a massive restructuring of its balance sheet, which will see holders of a chunk of its $7 billion debt turn their exposure into equity.” Citing “market sources,” they say that as a result, financial whiz and current ceo Barry O’Callaghan would have his 38 percent stake significantly diluted. Reed Elsevier would also see the 11.8 percent stake they took as part of the sale of Harcourt diluted in such a deal. While “it […]