Reed sells IPC magazines to Cinven buyout team for pounds 860m

Reed Elsevier yesterday confirmed the long-awaited sale of its IPC magazines division to a management buyout team backed by Cinven, the venture capitalists, for pounds 860m. But the media group stringently denied that it had not treated other bidders in the auction fairly. Peter Thal Larsen reports.

Cinven has arranged debt facilities of pounds 580m for the deal, and will put up over half of the remaining pounds 280m as equity. IPC's management team, led by chief executive Mike Matthew, will buy a "meaningful" equity stake with a consortium of banks controlling the rest.

Cinven director Brian Linden rejected allegations that the venture capital group had offered too much for the business. He said IPC, which leads the pounds 1.5bn UK magazine market, publishing titles such as Country Life, Woman's Own and Loaded, had good growth potential. Cinven plans to invest in the business before floating it on the stock market in about five years' time.

Reed Elsevier said it was delighted with the sale. "We're very happy to have done it swiftly, cleanly and at such a good price," said finance director Mark Armour. The sale marks the end of Reed's involvement in consumer publishing. It is currently attempting to sell off what remains of its consumer books division.

Mr Armour said the proceeds, which will leave the group with net cash, would be used to develop its scientific, professional and business divisions, which are concentrating on "must have" information.

Although Reed is currently seeking regulatory approval for its merger with Dutch publishing group Wolters Kluwer, Mr Armour did not rule out making acquisitions before the merger was approved.

The European Commission is due to rule on the deal in April, while shareholders will be asked to vote on it at the end of the same month.

Reed insisted that it had not received any better offers for IPC. The group had angered other bidders by allowing Cinven to enter into exclusive negotiations with IPC's management just before Christmas. But an adviser to Reed said that Cinven's bid had provided the best value, and that none of the other contenders had subsequently attempted to table a higher offer.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Selby Jennings: Oil Operations

Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...

The Jenrick Group: Night Shift Operations Manager

£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...

SThree: Trainee Recruitment Consultant - LONDON

£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...

Day In a Page

Isis in Iraq: Yazidi girls killing themselves to escape rape and imprisonment by militants

'Jilan killed herself in the bathroom. She cut her wrists and hanged herself'

Yazidi girls killing themselves to escape rape and imprisonment
Ed Balls interview: 'If I think about the deficit when I'm playing the piano, it all goes wrong'

Ed Balls interview

'If I think about the deficit when I'm playing the piano, it all goes wrong'
He's behind you, dude!

US stars in UK panto

From David Hasselhoff to Jerry Hall
Grace Dent's Christmas Quiz: What are you – a festive curmudgeon or top of the tree?

Grace Dent's Christmas Quiz

What are you – a festive curmudgeon or top of the tree?
Nasa planning to build cloud cities in airships above Venus

Nasa planning to build cloud cities in airships above Venus

Planet’s surface is inhospitable to humans but 30 miles above it is almost perfect
Surrounded by high-rise flats is a little house filled with Lebanon’s history - clocks, rifles, frogmen’s uniforms and colonial helmets

Clocks, rifles, swords, frogmen’s uniforms

Surrounded by high-rise flats is a little house filled with Lebanon’s history
Return to Gaza: Four months on, the wounds left by Israel's bombardment have not yet healed

Four months after the bombardment, Gaza’s wounds are yet to heal

Kim Sengupta is reunited with a man whose plight mirrors the suffering of the Palestinian people
Gastric surgery: Is it really the answer to the UK's obesity epidemic?

Is gastric surgery really the answer to the UK's obesity epidemic?

Critics argue that it’s crazy to operate on healthy people just to stop them eating
Homeless Veterans appeal: Christmas charity auction Part 2 - now LIVE

Homeless Veterans appeal: Christmas charity auction

Bid on original art, or trips of a lifetime to Africa or the 'Corrie' set, and help Homeless Veterans
Pantomime rings the changes to welcome autistic theatre-goers

Autism-friendly theatre

Pantomime leads the pack in quest to welcome all
The week Hollywood got scared and had to grow up a bit

The week Hollywood got scared and had to grow up a bit

Sony suffered a chorus of disapproval after it withdrew 'The Interview', but it's not too late for it to take a stand, says Joan Smith
From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?

Panto dames: before and after

From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?
Thirties murder mystery novel is surprise runaway Christmas hit

Thirties murder mystery novel is surprise runaway Christmas hit

Booksellers say readers are turning away from dark modern thrillers and back to the golden age of crime writing
Anne-Marie Huby: 'Charities deserve the best,' says founder of JustGiving

Anne-Marie Huby: 'Charities deserve the best'

Ten million of us have used the JustGiving website to donate to good causes. Its co-founder says that being dynamic is as important as being kind
The botanist who hunts for giant trees at Kew Gardens

The man who hunts giants

A Kew Gardens botanist has found 25 new large tree species - and he's sure there are more out there