11th Dec 2009 07:07
Candover and Cinven sell Springer
Candover Investments plc announces that its wholly owned subsidiary, CandoverPartners Limited, and Cinven have today agreed the sale of SpringerScience+Business Media, one of world's leading academic publishers, to Europeanfund EQT V and Singapore fund GIC. The transaction remains subject to customaryconditions, including regulatory approvals and is expected to close by lateJanuary/early February 2010.
The sale will generate cash proceeds of 11.4 million including carried interest for Candover Investments plc.
Springer was formed from the merger of Kluwer Academic Publishers which wasacquired in January 2003 for EUR600 million and BertelsmannSpringer which wasacquired in September 2003 for EUR1,050 million, in transactions jointly led byCandover Partners and Cinven. The merger created the global #2 player inscientific, technical and medical (STM) publishing. The management, led byDerk Haank, have generated significant growth since 2003, capitalising onmerger synergies as well as making innovative use of Springer's on-lineplatform to make available its entire backlist of journals and to launch newproducts such as e-books. EBITDA has almost doubled from cEUR150 million to overEUR280 million during this period.Including proceeds from earlier refinancings, Springer has generated a multipleof 1.7 times and an IRR of 28% for the Candover 2001 Fund. The 2001 Fund hasnow fully realised ten out of its 16 investments, achieving a realised multipleof 2.3 times and an IRR of 36% to date.
Cinven and Candover were advised by Goldman Sachs and UBS.
Ends.
*Candover means Candover Investments plc and / or one or more of its
subsidiaries, including Candover Partners Limited as General Partner/Manager of the Candover 1997, 2001, 2005 and 2008 Funds. For further information, please contact:
Tulchan +44 20 7353 4200 Susanna Voyle Peter Hewer
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