Proactive Investors - Bloomsbury (LON:BLPU) is acquiring US group Rowman & Littlefield's academic publishing business for £65 million making it the largest acquisition for the UK and boosting its presence in North America.
Bloomsbury will pay £60 million upfront in cash, with an additional £5 million held in escrow. The transaction does not include Rowman & Littlefield's trade publishing or other non-academic units.
Rowman & Littlefield, founded in 1949, publishes over 40,000 academic titles. The deal will enhance Bloomsbury's portfolio, expanding its reach in the arts, humanities, and social sciences.
Bloomsbury aims to grow its academic business, focusing on digital resources and expanding subject areas such as business and psychology. The acquisition is expected to increase Bloomsbury's earnings significantly by 2025/26.
It will be funded from the Harry Potter publisher's cash reserves and a £30 million loan from Lloyds (LON:LLOY) Bank. This transaction does not require shareholder approval.
"This acquisition is a game-changer for Bloomsbury," said Bloomsbury CEO Nigel Newton.
"Rowman & Littlefield is one of the few independent US academic publishers of such scale and it is great that our discussions with Jed Lyons have led to this acquisition.
"Their 40,000 academic titles added to ours will make us a significant US academic publisher, growing Bloomsbury's academic and digital publishing presence in North America, opening new markets and publishing areas to Bloomsbury, and is a key milestone in the delivery of our long-term growth strategy."