Books merger yields windfall of pounds 6m
Thursday 05 November 1998
Routledge, founded 150 years ago and publisher of books and journals such as Addiction and the Journal of Muslim Minority Affairs, has been acquired for pounds 90m by Taylor & Francis, a rival specialist publisher which came to the stock market in May.
The deal marks the end of a courtship of several years that saw each company try to buy the other. Taylor & Francis admitted yesterday that it has had its eye on Routledge for some time, but could not afford to buy the company until it had access to stock market funds. Routledge said it had approached Taylor & Francis over a year ago about a possible takeover deal but had been rebuffed.
The deal yields a significant profit for CinVen, the venture capital group which backed Routledge's management in a pounds 25m buyout two years ago. The biggest single windfall goes to Routledge's chairman, Robert Kiernan. He will receive pounds 1.4m, mostly in shares, and will become non-executive chairman of the enlarged group.
Taylor & Francis is raising pounds 22.7m via a placing and open offer of new shares priced at 193p to help fund the deal. The balance will come from new bank facilities and existing cash resources.
Taylor & Francis said it hoped to achieve pounds 2m of cost savings in the year to December 1999. The savings will come principally from stripping out duplicated functions such as sales forces, buying and head offices. Job cuts are inevitable, but the company did not give a figure.
In the year to June 1998 Routledge reported operating profit of pounds 4.8m on sales of pounds 47m.
Taylor & Francis chief executive, Anthony Selvey, said the companies were a good fit. Routledge is chiefly a book publisher strongly placed in the UK and Europe. Taylor & Francis is strongest in journals with good representation in North America.
"This will be a quantum leap forward for the business, and enable us to build further on the solid foundations that we have," Mr Selvey said.
Taylor & Francis shares close 10p higher at 223.5p.
- 1 Emma Watson on Jennifer Lawrence naked photo leak: 'Even worse than seeing women's privacy violated is reading the comments'
- 2 Saudis risk new Muslim division with proposal to move Mohamed’s tomb
- 3 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 4 Cee Lo Green: It is only rape if the victim is conscious
- 5 Nigerian witch-finder Helen Ukpabio threatens legal action against human rights organisations
Emma Watson on Jennifer Lawrence naked photo leak: 'Even worse than seeing women's privacy violated is reading the comments'
Victoria Justice on naked photo leak: 'Let me nip this in the bud right now – pun intended'
Ariana Grande nude photos leak: Pictures are completely fake, say representatives
Saudis risk new Muslim division with proposal to move Mohamed’s tomb
Kate Upton nude photos leak: Model's spokespeople 'looking into' authenticity of indecent images
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Ashya King: Parents of five-year-old boy refused permission to visit him in hospital and denied bail at Spanish court
With Douglas Carswell joining Ukip, my party has taken another giant step forward
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
Ashya King: 'Cruel NHS has not given us the treatment we need', says father of five-year-old with brain tumour who fled to Spain
iJobs Money & Business
£700 per day: Harrington Starr: Java/Calypso Developer Java, Calypso, J2EE, J...
£500 per day: Harrington Starr: SQL Developer SQL, C#, Stored Procedures, MDX...
£500 per day: Harrington Starr: C#.NET Developer C#, WPF, WCF, ASP.NET, Prism...
£55000 - £65000 per annum: Harrington Starr: A Global Financial Service Organi...