RCS Books passes to Mondadori for 127.5 million euro the new-born publishing giant – Il Sole 24 Ore

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This entry was posted on October 4, 2015 at 23:36.
The last change is the October 4, 2015 at 23:58.

Mondadori conquers RCS books and founded the largest publisher of books in Italy with revenues over half a billion euro and a market share of close to 40%. RCS sold in the evening the group of Segrate its area Books for 127.5 million euro. The transaction was approved the same day by the Board of Directors of Via Solferino. Negotiations between the two companies had begun in mid-February, when Mondadori made the first non-binding offer for the area Books group Rizzoli. Adelphi was excluded from the transfer: 58% of the publishing house that is owned by RCS will in fact be sold to partner Roberto Calasso.

In the late evening, came the signature which now Mondadori ( which already owns Einaudi, Piemme, Sperling & amp; Kupfer and Electa Frassinelli) will take home a number of prestigious brands. Besides Rizzoli and Rizzoli International Publications, RCS owns houses Bompiani, Marsilio, Fabbri, Bur, Sonzogno, ETAS and all the education division. Plus a portfolio of highly respected authors: Umberto Eco, Andrea De Carlo, Michel Houellebecq. Under the agreement Corriere and Gazzetta dello Sport will continue to conduct business on the books editorial side.

127 500 000 will be used to group led by CEO Peter Scott Jovane, to reduce the debt (526 million at the end of June) and boost RCS. With this operation Mondadori will be found to have 35% of the market for trade books (bought in bookstores or on the web) and a little ‘less than 25% in the education sector. For the new big publishing it will have estimated sales of over 500 million on an Italian market, which overall was worth $ 1.2 billion in 2014.

The transaction is concluded at a price lower than the figure of 135 million circulating in recent days. Because the fee reflects the expectations of results for the current year, are there any mechanisms for price adjustment equal to a maximum +/- 5 million euro related to the achievement of predetermined financial objectives in 2015. It is also an earn-out favor of RCS MediaGroup up to 2.5 million euro, in 2017 conditional on the achievement of certain results in the books segment.

The transaction involves the usual representations and warranties to the buyer . The acquisition, whose consideration will be settled in cash at the closing date, will be financed through the use of credit lines; the group recently signed an agreement with the lending banks to restructure existing lines in connection with the operation, reviewing deadlines and conditions. With the operation Mondadori will acquire exclusive ownership of all brands in the field of books, including Rizzoli. The agreement also provides that the heads of RCS MediaGroup can continue to engage in the publishing of books in line with that attuale.Il transaction is subject to approval by the appropriate regulatory authorities; any measures conditional authorization shall not prejudice the completion of the transaction.

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