Bloomsbury Publishing Plc (LSE: BMY) announced on Wednesday the acquisition of the academic publishing division of Rowman & Littlefield Publishing Group Inc., a US-based trade and academic publisher, for $83 million, approximately 65 million pounds.
Of the total purchase price, $76 million (or 60 million pounds) was paid in cash at the time of completion. An additional $7 million (or 5 million pounds), held in escrow, will be disbursed in cash post-completion.
Bloomsbury projects that this acquisition will be earnings accretive, excluding items and amortization, within the current fiscal year. The company foresees significant earnings accretion, excluding items and amortization, by the 2025/26 fiscal year, which will be the first full year following the acquisition.
Additionally, the company anticipates potential cost synergies derived from the increased scale of the combined business and operational improvements.
As noted by Bloomsbury, this acquisition—the largest in its history— notably accelerates and bolsters its academic publishing presence in North America, along with enhancing Bloomsbury Digital Resources (BDR).
Rowman & Littlefield's academic publishing business reported revenue of $36 million and a pre-tax profit of approximately $6 million in 2023, with gross assets totaling around $6 million.
The acquisition does not encompass Rowman & Littlefield's Globe Pequot lists (its trade publishing arm), Sundance-Newbridge (its K-8 education business), or National Book Network (its trade distribution business).
According to Bloomsbury, this transformative acquisition marks a significant phase in its strategic vision for 2030. The consolidated business will publish approximately 97,000 titles, establishing a substantial platform for future growth.
Bloomsbury has financed the acquisition using its internal cash reserves and a new $38 million, three-year term loan from Lloyds Bank Plc.
