21 Jan 2013 07:00
Smiths News PLC
Acquisition and expansion of books division
·; Acquisition continues to strengthen Bertrams international presence
·; Enlarged operational footprint in Northern Europe
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 acquired Erasmus Antiquariaat en Boekhandel B.V. ('Erasmus') from Tschenett Beheer B.V. for a net consideration of €1.5m satisfied in cash via a subsidiary Dawson Books Ltd.
Erasmus, based in the Netherlands, is a leading supplier of high quality books and journals into both academic libraries and Government Institutions mainly across Northern Europe. In the year ended 31 December 2012, Erasmus generated revenues of €15m.
The acquisition brings a complementary customer base to Bertrams with strong penetration in France, Germany and Switzerland. Following the successful acquisition of Houtschild in June 2012, Bertrams continues to pursue its stated international expansion programme, now having market leading positions in several key European territories. The Erasmus transaction will also see entry into the U.S market and increases total international sales to £50 million on a pro forma basis1.
The acquisition is expected to be earnings neutral in FY13, adding an incremental £0.4m in FY14.
Mark Cashmore, Chief Executive Officer of Smiths News PLC, said:
"We are delighted to have completed another strategic bolt-on acquisition, which is an excellent addition to our books business. Erasmus extends our Northern European academic business and accelerates our expansion plans. The Group will benefit from an increase in scale and a stronger sales presence in Northern Europe."
Note 1: Full year pro forma is the contribution of the acquired business to the results of Bertrams, as if the acquisition had been made at the beginning of financial year 2012.
Enquiries:
Smiths News PLC | |
Mark Cashmore, Group Chief Executive | Tel: 01793 563641 |
Nick Gresham, Chief Financial Officer | |
Buchanan | |
Jeremy Garcia / Gabriella Clinkard | Tel: 020 7466 5000 |
About Smiths News PLC:
Smiths News PLC comprises Smiths News, the UK's leading wholesaler of newspapers and magazines, Bertram Books, a leading UK book wholesaler and The Consortium, a leading independent distributor of consumable products to the education and care markets.
Smiths News distributes newspapers and magazines on behalf of all the major national publishers as well as a large number of regional publishers. The business serves approximately 30,000 customers across England and Wales, supplying large general retailers as well as smaller independent newsagents. Smiths News has an approximate 55% share of the newspaper and magazine wholesaling market in the UK. In addition to its distribution activities, Smiths News collects and processes returns, supplies sales information to publishers and provides a range of services for its retail customers.
Bertram Books supplies books to a mix of independent booksellers, on-line and multiple retailers, and libraries. Bertrams is a leading supplier of consumer and academic books in the UK and a growing player in international, digital and B2C markets.
In April 2012 the company acquired The Consortium. The Consortium is the UK's leading distributor of educational and care consumable products servicing 30,000 customers. The business has a 6% market share in large and growing markets.