In major news on UK stocks, Bloomsbury Publishing PLC (GB:BMY) announced its acquisition of the academic publishing business of the U.S.-based Rowman & Littlefield Publishing Group. This marks the largest deal for Bloomsbury’s to date and is part of the company’s efforts to expand and strengthen its business interests in the U.S. market.
Following the announcement, Bloomsbury shares gained nearly 5% as of writing.
Bloomsbury Publishing is a British publishing company renowned for its expertise in both fiction and non-fiction literature. The company gained widespread acclaim as the original publisher of J.K. Rowling’s Harry Potter series in the UK.
Bloomsbury’s Strategic Acquisition
This pivotal acquisition marks a significant milestone in Bloomsbury’s 2030 vision, propelling it to the forefront of U.S. academic publishing. The company stated that this acquisition will expedite BDR (Bloomsbury Digital Resources), raising its target revenue for 2027/28 to £41 million.
The total consideration amounts to £65 million, with £60 million disbursed in cash upon completion of the deal. Further, £5 million will be kept in escrow and settled in cash following completion. The company has funded this acquisition through its existing cash reserves and a new three-year term loan of £30 million arranged with Lloyds Bank (GB:LLOY).
The acquisition is expected to boost earnings, excluding specified items and amortization in the current year, and significantly boost earnings in the first full year of 2025/26. Moreover, Bloomsbury foresees cost synergies arising from the increased scale of the combined business and operations.
Year-to-date, Bloomsbury stock has traded up by 19%.
