The various private equity companies that have traded educational publisher Springer for more than a decade now have hoped for an offering of shares to the public since at least 2012 if not earlier, both to help pay down a persistent debt load and to provide a pathway to an exit. The current incarnation of the company, the Springer Nature joint venture, came close to pulling it off in 2018 — but the offering on the Frankfurt Stock Exchange fell apart at the last minute. At first they reduced the share price and had 53-percent partner Holtzbrinck step in to […]
Finance
Not a Good Quarter for Cengage
Educational publisher Cengage — hoping to merge soon with McGraw-Hill if the DOJ approves the plan — continues to struggle while waiting, with revenue falling $63.9 million, down to $410.4 million, in the fiscal second quarter, ending September 30. Net income was $11.5 million, down from $34.4 million. After adjusting for currency exchange, income was even lower, down to $6.5 million from $32.7 million. The company started yet another restructuring during the quarter, “in its Learning segment to streamline operations,” which it says will allow it to make good on its full-year profit forecast. This follows an earlier, now “fully […]
International: Haynes Puts Itself Up for Sale, and Bonnier Launches A Danish Publisher
Haynes Publishing, which is publicly traded in London, has decided to put itself up for sale, with Europa Partners as its financial adviser. Founder John Haynes died a year ago. Executive chairman Eddie Bell said in a statement, “The board now believes our future will be best secured by the whole group becoming part of an organization with the financial resources to invest for future expansion and take the company through to the next 60 years of success.” Sales for the fiscal year ending May 31 were £36.2 million, up 7 percent. Elsewhere, Bonnier Books will launch a new publishing […]
Penguin Children’s Acquires Eric Carle’s Rights
Penguin Children’s announced on Tuesday that as of January 1, 2020 it will acquire Eric Carle LLC, which owns the intellectual property rights to the author and illustrator’s over 70 children’s books, as well as his licensing business. Carle, 90, has sold over 145 million copies of his books worldwide by their report (including more than 50 million copies of The Very Hungry Caterpillar alone). The acquisition was made by Penguin Random House US ceo Madeline McIntosh and Penguin Children’s president Jen Loja, and starting in January business operations for what has previously been the Eric Carle Studio will be […]
Corporate: Pearson Buys EdTech Company, Sourcebooks Brings Back Holiday Shipping
Pearson announced the acquisition of edtech company Lumerit Education, which focuses on college degree completion and affordability, valuing the company at $29 million. Lumerit’s 70 employees will become part of Pearson’s Online Learning Services business. Separately, Sourcebooks will resume their holiday rapid replenishment program again for independent bookstores. The program starts November 4 and continues through December 19.
New Investor Eyes Barnes & Noble Education
Between late August and mid-October, James Barnes at BBA Holding Corp. built a position in Barnes & Noble Education, now at 5.07 percent of shares and thus requiring reporting to the SEC in a form 13D. Barnes controls approximately 2.4 million shares of the underperforming campus bookseller — and he also sold short puts on another 1.9 million shares expiring in 2020 at prices of between $2.50 a share and $5.00 a share (betting that the stock will stay above the put prices). After bottoming out at under $3 a share in early October, the stock now trades at $4.25 […]