Acquisition of Osprey Publishing Limited

RNS Number : 5164A

Bloomsbury Publishing PLC

22 December 2014

Bloomsbury Publishing Plc

Acquisition of Osprey Publishing Limited

Bloomsbury Publishing Plc ("Bloomsbury") announces that it has today completed the acquisition of the entire issued share capital of Osprey Publishing Ltd ("Osprey"), the Oxford-based military and natural history publisher, from private equity ownership, principally The Third Alcuin Fund LP, a fund managed by Alcuin Capital Partners LLP. The consideration of £4.6 million was satisfied by the payment of £3.2 million in cash on completion and the issue of 869,054 new Bloomsbury Ordinary shares to the value of £1.4 million, which constitute approximately 1.2 per cent. of Bloomsbury's outstanding share capital. Osprey had approximately £0.3 million of cash at the time of acquisition.

Osprey generated £7.0* million of revenue and £0.3* million of adjusted earnings before interest, taxation, depreciation and amortisation in the year ended 31 December 2013. Gross assets at that date were £4.5* million. There are opportunities for profit enhancements following the integration of the business into Bloomsbury. The acquisition is expected to be immediately earnings enhancing contributing approximately £1.0 million of revenue to Bloomsbury in the year ending 28 February 2015.

The Osprey Group consists of Osprey Military, Heritage and Custom Publishing, and British Wildlife Press. Osprey Publishing is the world's best known military history brand, publishing in trademark series, in both print and e-book formats, titles with international appeal, covering history from ancient times to the modern day. The Military division is the largest part of Osprey with a significant subscriber database. British Wildlife Publishing publishes high quality books and the British Wildlife magazine for lovers of the natural world. Last year Osprey Group published 212 titles in addition to its British Wildlife magazine. Osprey owns the copyright over the majority of its titles. Over 50 per cent. of Osprey's revenue is generated outside the UK, principally in the US, thereby increasing Bloomsbury's benefit from the global book market. The business will operate within Bloomsbury's Special Interest Publishing, a part of the Adult division.

Nigel Newton, Chief Executive of Bloomsbury commented:

"The acquisition of Osprey increases our presence in niche special interest markets. It is complementary to, and will substantially enhance, our existing lists; in particular increasing the division's expertise in natural history and military history publishing, as well as international sales."

1. * signifies that these numbers are unaudited.

2. The statement in this announcement regarding the enhancement of earnings does not constitute a profit forecast nor should it be interpreted as meaning that the earnings of Bloomsbury for the current or future years will necessarily match or exceed the historical published earnings of Bloomsbury.

A copy of this announcement can be found on our website at www.bloomsbury-ir.co.uk. For further information, please contact: