Business
Disposal of Books Division
Disposal of Books Division.
About this update from Smiths News Plc
[{"type":"text","content":"\n \nRNS Number : 0040A Connect Group PLC 21 December 2017 \n\nConnect Group PLC\n('Connect Group' or 'the Group')\n \nDisposal of Books division to Aurelius Equity Opportunities\n \nConnect Group PLC announces that it has signed an agreement to dispose of its Books division (\"Connect Books\") with the listed pan-European mid-market investor Aurelius Equity Opportunities SE & Co. KGaA (\"Aurelius\"), for a total cash consideration of up to £11.6m. Under the terms of the agreement, £10.6m will become payable at completion and up to £1.05m will be payable on the successful recovery of certain third party debt receivables and certain tax refunds from relevant tax authorities. The agreement with Aurelius is subject to common warranties, indemnities and limitations.\n \nConnect Books is a multi-channel wholesaler, distributor and retailer of printed and digital books, with operations in the UK, the Netherlands, and France. The senior management team of Connect Books, including Managing Director Justin Adams, will transfer with the business.\n \nStrategic Highlights\n \n· The disposal follows Connect Group's announcement at its preliminary results in October 2017 that Connect Books is no longer considered to be core to the Group's growth strategy.\n \n· The disposal allows Connect Group to focus solely on the integration of its core businesses comprising Smiths News, Tuffnells Parcels Express and Pass My Parcel and the growth opportunities that arise from leveraging its scale and leadership in Early Morning and Mixed Freight distribution.\n \n· The agreement with Aurelius comprises the sale of all of Connect Books' trading businesses, including: Bertram Books, Wordery, Dawson Books and Bertram Library Services in the UK together with Erasmus, Houtschild and Dawson Books' overseas subsidiaries.\n \n· The disposal will complete following anti-trust merger approval from the German Federal Cartel Office. We do not anticipate any complications with this and would consequently expect completion to take place early in the New Year. An announcement confirming completion will be issued in due course.\n \nFinancial Highlights\n \n· Consi...