Acquisition and expansion of books division

RNS Number : 5150C

Smiths News PLC

17 April 2013

 



Smiths News PLC

Acquisition and expansion of books division

Smiths News PLC ("the Group"), the largest UK newspaper and magazine wholesaler, a leading UK book supplier and a leading distributor of consumable products to the education market, is pleased to announce its wholly owned book business Bertram Books ('Bertrams'), has agreed to acquire certain European and African academic library services contracts from Blackwell UK Limited.  The acquisition is expected to be formally completed on 20 May 2013 and the net consideration of up to £2.1 million will be satisfied in cash via its subsidiary Dawson Books Ltd.

The acquisition further strengthens Bertrams' established international footprint and brings with it a complementary customer base with a strong presence in Germany, France and South Africa.  The high quality contracts being acquired as part of the transaction generate revenues of £10.5 million at FY12 levels increasing Bertrams' total international sales to £60 million on a pro forma basis¹.

The acquisition will be earnings neutral in FY13, adding an incremental £0.7 million in FY14.

Mark Cashmore, Chief Executive Officer of Smiths News PLC, said:

"We are delighted to be further extending our international books business offering following the completion of this complementary bolt-on acquisition.  Our ability to build both scale and reach will enable Bertrams to target key international markets as we continue to capitalise on expansion opportunities."

Note 1: Full year pro forma is the contribution of the acquired business to the results of Bertrams, as if the acquisition had been made at the beginning of financial year 2012.

Enquiries:

Smiths News PLC
Mark Cashmore, Group Chief Executive	Tel: [phone]
Nick Gresham, Chief Financial Officer
Buchanan
Jeremy Garcia / Gabriella Clinkard	Tel: [phone]

About Smiths News PLC:

Smiths News PLC comprises Smiths News, the UK's leading wholesaler of newspapers and magazines, Bertram Books, a leading UK book wholesaler and The Consortium, a leading independent distributor of consumable products to the education and care markets.

Smiths News distributes newspapers and magazines on behalf of all the major national publishers as well as a large number of regional publishers. The business serves approximately 30,000 customers across England and Wales, supplying large general retailers as well as smaller independent newsagents.  Smiths News has an approximate 55% share of the newspaper and magazine wholesaling market in the UK.  In addition to its distribution activities, Smiths News collects and processes returns, supplies sales information to publishers and provides a range of services for its retail customers.

Bertram Books supplies books to a mix of independent booksellers, on-line and multiple retailers, and libraries. Bertrams is a leading supplier of consumer and academic books in the UK and a growing player in international, digital and direct to consumer markets.

In April 2012 the company acquired The Consortium.  The Consortium is the UK's leading distributor of educational and care consumable products servicing 30,000 customers.  The business has a 5% market share in large and growing markets.

 

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