The London-listed Bloomsbury Publishing has announced its largest acquisition to date, purchasing the academic publishing business of American rival Rowman & Littlefield for £65 million.
This strategic move aims to expand Bloomsbury's presence in the United States and diversify into new subject areas such as business and psychology. The acquisition, financed from Bloomsbury’s cash reserves and a £30 million three-year loan from Lloyds Banking Group, will create a business publishing 97,000 academic titles.
Fiona Orford-Williams, director at Edison Group, noted that the deal with Rowman & Littlefield “should not come as a surprise,” given Bloomsbury’s cash reserves of £65.8 million as reported in its most recent annual accounts. Bloomsbury stated that the acquisition would boost its earnings in the current financial year and “significantly” increase earnings in the following 12 months.
The group's shares rose by 40p, or 7.2 percent, closing at 598p. Jed Lyons, 72, the chief executive of Rowman & Littlefield, described the companies as a “compelling fit.”
