GERMANY (CelebrityAccess) – German media gaint Bertelsmann, parent company of BMG, has announced its plans to fully acquire Penguin Random House, the world’s largest publishing company, in a deal worth $675 million.
The acquisition is subject to regulatory approval and is expected to close in the second quarter of 2020.
As part of the deal, Bertelsmann, which already owns 75% of Penguin Random House, will acquire the remaining 25% stake currently held by its British co-shareholder Pearson.
Bertelsmann chairman and CEO Thomas Rabe said: “The increase to 100 percent is a milestone for Bertelsmann. We will become the sole owner of the world’s biggest trade publishing group, which sets standards with its creative diversity, global marketing power, and commercial strength. We will continue to expand Penguin Random House in the coming years, through organic growth and acquisitions. The book business is part of Bertelsmann’s identity,” added Rabe who is also chairman of the board of directors of Random House. “For us and our shareholders, the transaction is commercially attractive, as the share of Bertelsmann’s shareholders in group profit will increase by more than €70 million per year.”
Markus Dohle, CEO of Penguin Random House, added: “The full acquisition of Penguin Random House is a testament to Bertelsmann’s belief in the future of books and reading, as well as their trust in our colleagues around the world to be able to grow our company over the next several years. We are extremely well positioned to continue to take advantage of both organic and acquisitive growth opportunities in existing and new markets globally.”
Bertelsmann and Pearson combined their respective Random House and Penguin Group businesses in 2013.