26th May 2005 07:03
Reed Elsevier PLC26 May 2005 NEWS RELEASE Issued on behalf of Reed Elsevier PLC and Reed Elsevier NV 26 May 2005 Reed Elsevier announces binding offer to acquire MediMedia's European and US Netter professional medical publishing businesses Reed Elsevier announced today that it has made a binding offer to acquireMediMedia's European and US Netter professional medical publishing businesses(MediMedia MAP) for €270 million in cash, subject to the necessary regulatoryclearances. The acquisition of MediMedia MAP would be an important next step in ReedElsevier's strategy of building a leading global healthcare business in longterm growth markets. It is a high quality business that fits extremely wellwithin the Elsevier Health Sciences division. MediMedia MAP is a leading provider of medical information in fast growinginternational healthcare markets, with its principal operations in France, Spainand the US as well as activities in the UK, Italy and Mexico. MediMedia MAP hashighly successful brands in its markets and outstanding content. Publishingthrough the highly regarded imprints of Masson, Doyma and Netter amongst others,MediMedia MAP provides medical books and journals and reference informationprincipally for the practioner market as well as continuing medical educationand pharmaceutical industry sponsored communications. The world renowned Nettercollection of medical illustrations is sold in over 200 countries. The geography and publishing programmes of the MediMedia MAP businesses fitexcellently within Reed Elsevier's specialist health sciences group, ElsevierHealth Sciences International. MediMedia MAP will bring Elsevier an extendedfootprint in France, Spain, Italy and Mexico as well as significant new content.The combination of the two businesses will accelerate growth with expandedpublishing programmes and digital services, serving the growing medical andallied healthcare professions and their evolving needs for greater productivityand in meeting the increasing trend for structured continuing education. The MediMedia MAP businesses saw revenues of €101 million and proforma EBITDA of€16 million in 2004. The focus on new publishing and marketing opportunitiesand the benefits of shared operations and sales and digital expertise areexpected to build revenue growth to around 7-8% per annum in the second yearpost acquisition and to significantly improve profitability. The acquisition isexpected to be accretive to adjusted earnings from the outset, and to generatepost tax annual returns in excess of 8% within three years, covering ReedElsevier's cost of capital, and to continue to grow returns strongly thereafter.Elsevier's Health Sciences International business outside the US had revenuesof US$414 million in 2004 and is budgeted to deliver organic growth of at least7% in 2005. Commenting on the transaction, Elsevier's CEO Erik Engstrom said: "We are veryexcited by the opportunities presented by an acquisition of MediMedia MAP. Itis a business showing strong growth potential, with prestigious brands andcontent. We look forward to continuing to invest in the respected French,Spanish, and Italian medical publishing traditions of Masson and Doyma, as wellas developing the potential of the successful Netter business. The combinationof our two successful businesses will provide all our customers with expandedresources to contribute further to their professional success." Notes to Editors Reed Elsevier Group plc is a world leading publisher and information provider.It is owned equally by its two parent companies, Reed Elsevier PLC and ReedElsevier NV. The parent companies are listed on the London, Amsterdam and NewYork Stock Exchanges, under the following ticker symbols: London: REL;Amsterdam: REN; New York: RUK and ENL. In 2004, Reed Elsevier made adjustedprofit before taxation of £1,027 million/€1,510 million on turnover of £4,812million/€7,074 million. The group employs 35,600 people, includingapproximately 22,000 in North America. Operating in the scientific, legal,educational and business-to-business sectors, Reed Elsevier provides high valueand flexible information solutions to professional end users, with increasingemphasis on internet delivery. -Ends- For further information please contact: Media: Catherine May: +44 (0)20 7166 5657 Investors: Sybella Stanley: +44 (0)20 7166 5630 Forward looking statements This announcement contains forward looking statements within the meaning ofSection 27A of the Securities Act 1933, as amended, and Section 21E of theSecurities Exchange Act 1934, as amended. These statements are subject to anumber of risks and uncertainties and actual results and events could differmaterially from those currently being anticipated as reflected in such forwardlooking statements. The terms 'expect', 'should be', 'will be', and similarexpressions identify forward looking statements. Factors which may cause futureoutcomes to differ from those foreseen in forward looking statements include,but are not limited to: general economic conditions and business conditions inReed Elsevier's markets; exchange rate fluctuations; customers' acceptance ofits products and services; the actions of competitors; legislative, fiscal andregulatory developments; changes in law and legal interpretation affecting ReedElsevier's intellectual property rights and internet communications; and theimpact of technological change This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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