4th May 2007 17:31
Reed Elsevier PLC04 May 2007 NEWS RELEASE For immediate release 4 May 2007 Issued on behalf of Reed Elsevier PLC and Reed Elsevier NV Reed Elsevier announces sale of Harcourt Assessment and Harcourt Education International to Pearson plc for $950 million Reed Elsevier is pleased to announce today that it has entered into a definitiveagreement to sell the Harcourt Assessment and Harcourt Education Internationalbusinesses of its Harcourt Education division to Pearson plc for a considerationof $950 million payable in cash. Harcourt Assessment, headquartered in San Antonio, Texas, is a leader in testingand performance measurement services for educational and clinical use. HarcourtEducation International, headquartered in Oxford, UK, is a leading publisher ofeducational materials in international markets, including the UK, South Africa,Botswana, Australia and New Zealand. The sale of the businesses is expected to complete in stages followingregulatory review by the relevant authorities where required. Harcourt Assessment and Harcourt Education International had in 2006 revenues of$524 million and operating profits before the amortisation of acquiredintangible assets of $31 million, before taking account of $21 million ofrestructuring and non recurring costs. As at 31 December 2006, the combinedcapital employed in these businesses including acquired goodwill and intangibleassets was $601 million. Gross assets were $741 million. In February 2007, Reed Elsevier announced the planned disposal of its HarcourtEducation division in order to sharpen its strategic focus on the growingdigital opportunities in its key markets of Science, Medical, Legal andBusiness. The sale process for the US Schools basal and supplemental publishing businessesof the Harcourt Education division is proceeding satisfactorily and the disposalis expected to complete in the second half of 2007. These remaining businessesreported in 2006 revenues of $1,113 million and operating profit before theamortisation of acquired intangible assets of $228 million. The net proceeds from the disposal of Harcourt Assessment and Harcourt EducationInternational will be included in the intended return to shareholders followingcompletion of the sale of the Harcourt Education division. Sir Crispin Davis, Chief Executive of Reed Elsevier, said: "We are delighted to have successfully sold the Harcourt assessment andinternational education businesses to a good home, achieving an excellent pricefor our shareholders that reflects the quality of the businesses. The Harcourtsale process is off to a good start." UBS Investment Bank is acting as financial adviser to Reed Elsevier on the saleof the Harcourt Education division. - ENDS - Enquiries Sybella Stanley (Investors)+44 20 7166 5630 Patrick Kerr (Media)+44 20 7166 5646 This statement contains forward looking statements within the meaning of Section27A of the Securities Act 1933, as amended, and Section 21E of the SecuritiesExchange Act 1934, as amended. These statements are subject to a number of risksand uncertainties and actual results and events could differ materially fromthose currently being anticipated as reflected in such forward lookingstatements. The terms 'expect', 'should be', 'will be', and similar expressionsidentify forward looking statements. Notes to editors Reed Elsevier is a world leading publisher and information provider. It is ownedequally by its two parent companies, Reed Elsevier PLC and Reed Elsevier NV. Theparent companies are listed on the London, Amsterdam and New York StockExchanges, under the following ticker symbols: London: REL; Amsterdam: REN; NewYork: RUK and ENL. In 2006, Reed Elsevier made adjusted profit before taxationof £1,052 million on turnover of £5,398 million. The group employs 37,000people, including approximately 20,000 in North America. Operating in thescientific, legal, educational and business-to-business sectors, Reed Elsevierprovides high value and flexible information solutions to professional endusers, with increasing emphasis on internet delivery. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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