Acquisition

RNS Number : 4183W

Bloomsbury Publishing PLC

23 April 2021

 

BLOOMSBURY PUBLISHING PLC

("Bloomsbury" or "the Company")

New Bloomsbury acquisition strengthens Bloomsbury Digital Resources division

23 April 2021

Bloomsbury Publishing Plc (LSE: BMY), the leading independent publisher, today announces that it has signed a sale and purchase agreement for the acquisition of certain assets of Red Globe Press ("RGP"), the academic imprint, from Macmillan Education Limited, a part of Springer Nature Group. The consideration is £3.7 million, of which £2.1 million will be satisfied in cash at completion and up to £1.6 million will be paid on or post-completion, subject to assignment of certain contracts.

RGP specialises in high-quality publishing for Higher Education students globally in Humanities and Social Sciences, Business and Management, and Study Skills. RGP has a backlist of more than 7,000 titles and publishes more than 100 new titles per year, with content including digital platforms, textbooks, research-driven materials and general academic publishing. The acquired RGP titles are a good strategic fit, strengthen Bloomsbury's existing academic publishing, and establish new areas of academic publishing in Business and Management, Study Skills and Psychology. RGP's three digital products will be migrated to Bloomsbury Digital Resources' own platform and its content added to Bloomsbury Collections. The business will operate within Bloomsbury's Academic and Professional division.

RGP generated £9.6 million* of revenue in the year ended 31 December 2020, and profit before tax of £1.1 million, with gross assets of approximately £0.8 million. There are opportunities for profit enhancements following the integration of the business into Bloomsbury. In the remaining nine months of Bloomsbury's financial year ending 28 February 2022, RGP is expected to contribute approximately £6.0 million of revenue and £0.4 million of profit before tax, prior to integration and acquisition costs.

Nigel Newton, Chief Executive of Bloomsbury, commented:

"We are delighted to acquire the Red Globe Press list. Red Globe Press aligns well with our existing academic publishing and provides a gateway to new and attractive academic publishing areas. This move is another key step in the delivery of our strategic growth strategy, and continues our drive to grow our Non-Consumer business. Acquiring these complementary lists accelerates our digital growth and our significant presence in humanities and social sciences academic publishing."

Emma Bourne, Managing Director Curriculum and Higher Education, Macmillan Education, commented: "Following a strategic review of the business, we have decided to focus on our core markets of K-12 English Language Teaching and Curriculum. We are sure that Red Globe Press, its team of dedicated staff, and all its authors will flourish within Bloomsbury, where the imprint can continue to grow its excellent academic publishing." 

*These numbers are unaudited.

For further information, please contact:

Bloomsbury Publishing Plc
Nigel Newton, Chief Executive	[e-mail]
Penny Scott-Bayfield, Group Finance Director	[e-mail]
Hudson Sandler	[phone]
Dan de Belder / Rebekah Chapman	[e-mail]

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR . 

The information in this announcement has not been audited or otherwise independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this announcement, or its contents, or otherwise arising in connection with this announcement.

This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding the shares of the Company.

Certain statements, statistics and projections in this announcement are or may be forward looking. By their nature, forward‑looking statements involve a number of risks, uncertainties or assumptions that may or may not occur and actual results or events may differ materially from those expressed or implied by the forward-looking statements. Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on any forward-looking statement. Accordingly, forward-looking statements contained in this announcement regarding past trends or activities should not be taken as representation that such trends or activities will continue in the future. You should not place undue reliance on forward-looking statements, which are based on the knowledge and information available only at the date of this announcement's preparation.

The Company does not undertake any obligation to update or keep current the information contained in this announcement, including any forward‑looking statements, or to correct any inaccuracies which may become apparent and any opinions expressed in it are subject to change without notice.

References in this announcement to other reports or materials, such as a website address, have been provided to direct the reader to other sources of information on Bloomsbury Publishing Plc which may be of interest. Neither the content of Bloomsbury's website nor any website accessible by hyperlinks from Bloomsbury's website nor any additional materials contained or accessible thereon, are incorporated in, or form part of, this announcement.

 

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