Mondadori sells 50% of the joint venture Random House Mondadori to the Bertelsmann Group for €54.5 million

 

Arnoldo Mondadori Editore S.p.A. today announced that it has signed a preliminary agreement for the sale to Media Finance Holding (Bertelsmann Group) of its entire stake, equal to 50% of the share capital, of the Spanish company Random House Mondadori S.A..

Established in 2001 as a joint venture with the Bertelsmann Group, Random House Mondadori operates in the trade books market in Spain and in the main Latin American countries, in particular Mexico, Argentina, Colombia, Uruguay and Chile.
In the year ended 31 December 2011, Random House Mondadori generated consolidated revenues of €110.3 million (€55.9 million to 30 June 2012).

The transaction value, comprising the purchase price and cash, has been determined at €54.5 million, with a positive impact on the consolidated income statement, in terms of a capital gain, estimated at €2.8 million.

The agreement will allow the Mondadori Group to further consolidate and focus investment and resources on its priority objectives as indicated during the process for the approval of the company’s interim financial statements.
With regard to books, this operation is part of the already outlined strategy focused on the acceleration of growth in both the trade and education sectors with an integrated model for print paper and digital, which includes the recent introduction in the Italian market of the Kobo eReaders and the forthcoming launch of a self-publishing platform.
Mondadori is also developing a unified distribution model under a single brand, inMondadori, which combines offline and online bookstores, e-commerce and physical retail, in a multiplatform system for the management of all the different sales channels.

Completion of the operation and the execution of the preliminary contract are subject to approval by the Spanish antitrust authorities, which is expected by the end of the year.