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."