Reed sells IPC magazines to Cinven buyout team for pounds 860m
Tuesday 06 January 1998
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.
- 1 What happens to your body when you give up sugar?
- 2 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 3 Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
- 4 Penis size: Study revealing 'what's normal' sends international media into meltdown
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
Ayesha Ali death: Mother and her girlfriend found guilty of manslaughter of eight-year-old
George Clooney and Amal fail to get special treatment at New York restaurant
Cindy Crawford 'un-PhotoShopped' viral Marie Claire image was doctored, claims photographer
'A girl is more responsible for rape than a boy': The statement that shocked the world... except India
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...
£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...