Business News
EQT V and GIC Agree to Acquire Springer Science+Business Media from Candover and Cinven
Friday 11. December 2009 - EQT V to buy 82% and GIC to buy 18% of Springer Science+Business Media, the worlds second-largest scientific, technical and medical publisher, and a leader in the digitization of scientific information Company Management expected to re-invest
EQT V, a leading European private equity fund, and GIC Special Investments (“GICSI”), the private equity arm of the Government of Singapore Investment Corporation (“GIC”), announce that they have agreed to acquire 100% of Springer Science+Business Media (“Springer”), from its current owners, private equity investors, Candover and Cinven. EQT V intends to buy 82% and GICSI to buy 18% of Springer, the worlds second-largest scientific, technical and medical (“STM”) publisher, and a leader in the digitization of scientific information. The transaction remains subject to customary conditions, including regulatory approvals. It is expected to close by late January/early February 2010, and will result in the full repayment of all existing debt facilities.
“Springer is perfectly positioned in a market where we see great growth potential. We believe that by working together with the company and the best-in-class management team under CEO Derk Haank we can drive both expansion and further development of the successful e-business” says Marcus Brennecke, Senior Partner at EQT Partners, advisor to EQT V. “As the number 2 player in the STM sector, Springer is a great platform for further consolidation and market share growth” Marcus Brennecke added.
EQT has a strong track record of fostering growth and value creation in the more than 70 companies that it has invested in over the last 14 years. EQTs strategic vision is to provide the most successful investment organization and network of industrialists to those companies in which the funds operate by combining entrepreneurship, industrial thinking and financial discipline. The funds invest in companies in which EQT can act as a catalyst for change and growth and to transform companies into global or regional leaders by making genuine and sustainable improvements. Since EQTs first acquisition in 1995, the average annual growth in its portfolio companies has been 13%, the number of employees has increased by 12% and earnings by 20% annually.
EQT V intends, together with Springers management and GICSI, to drive the transformation to an online STM publisher as well as to further expand the market leading STM book publishing business.
Derk Haank, Springers CEO, said “The Springer Executive Management Team has had constructive and collegial discussions with EQT V and I am confident that this marks the beginning of a new exciting and successful chapter for us and for our new partners at EQT V. The sale will allow us to move our ambitious and ongoing “e” strategy forward, and to invest more heavily for our stakeholders benefit – this is the best solution for the company, our employees and shareholders.”
EQT V was advised on the transaction by Deutsche Bank, Unicredit Group and Barclays Capital. Goldman Sachs International, Unicredit Group, Barclays Capital, and Deutsche Bank have been mandated to arrange and underwrite the financing.
The transaction marks EQT´s 18th investment in Germany.
About EQT EQT is a group of leading private equity funds with investments in Northern Europe, Central and Eastern Europe, USA and Asia. EQT manages funds active within buy-outs, growth financing and infrastructure. EQT deploys a unique industrial approach to investing, utilizing a vast network of industrialists to identify and develop companies. EQTs model is based on clear corporate governance. The EQT funds mainly acquire or finance market leaders with considerable growth potential.
EQT acts as a catalyst for change in the companies that the funds invest in. The companies develop into market leading players through genuine and sustainable operational improvements. EQT has raised approximately EUR 13 billion in 12 funds, which have invested approximately EUR 7 billion in more than 70 companies. EQT owned companies have more than 500,000 employees.
Since EQTs first acquisition in 1995, the average annual growth in its portfolio companies has been 13%, the number of employees has increased by 12% and earnings by 20% annually. More than 90% of the value creation is attributable to growth, strategic repositioning and increased earnings.
EQT Partners is advisor to all EQT funds and has more than 100 investment professionals with an extensive industrial and financial competence. EQT Partners has offices in Copenhagen, Frankfurt, Helsinki, Hong Kong, London, Munich, New York, Oslo, Shanghai, Stockholm, Warsaw and Zurich.