11/12/09

Candover and Cinven sell Springer

Candover Investments plc announces that its wholly owned subsidiary, Candover Partners Limited, and Cinven have today agreed the sale of Springer Science+Business Media, one of world’s leading academic publishers, to European fund EQT V and Singapore fund GIC. The transaction remains subject to customary conditions, including regulatory approvals, and is expected to close by late January/early February 2010.

The sale will generate cash proceeds of £11.4 million including carried interest for Candover Investments.

Springer was formed from the merger of Kluwer Academic Publishers which was acquired in January 2003 for €600 million and BertelsmannSpringer which was acquired in September 2003 for €1,050 million, in transactions jointly led by Candover Partners and Cinven. The merger created the global #2 player in scientific, technical and medical (STM) publishing. The management, led by Derk Haank, have generated significant growth since 2003, capitalising on merger synergies as well as making innovative use of Springer’s on-line platform to make available its entire backlist of journals and to launch new products such as e-books. EBITDA has almost doubled from c€150 million to over €280 million during this period.

Including proceeds from earlier refinancings, Springer has generated a multiple of 1.7 times and an IRR of 28% for the Candover 2001 Fund.  The 2001 Fund has now fully realised ten out of its 16 investments, achieving a realised multiple of 2.3 times and an IRR of 36% to date.

Cinven and Candover were advised by Goldman Sachs and UBS.

Ends.

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