(Alliance News) - Pearson PLC on Tuesday said it has sold its Italy and Germany based Local K12 courseware businesses to Helsinki-based Sanoma Corp.
The sale worth GBP163 million will be paid in cash on completion, Pearson said. "The Italian and German local K12 Courseware businesses had gross assets of about GBP135 million and net assets of about GBP105 million as at December 31, 2021," Pearson explained.
Under the terms, the London-based education publisher added it will distribute its English language teaching products to Sanoma in Italy.
The sale was part of the education materials company's ongoing strategic review, which Pearson said it continues to "make good progress" in the remaining areas of the review. Giving an update, the company said its businesses subject to strategic revenue contributed GBP252 million to its 2021 revenue. Pearson's total 2021 revenue was GBP3.43 billion, up 1% year-on-year, as announced in February.
Pearson expects a hit of around GBP15 million to GBP20 million resulting from the disposals of strategic review businesses on its 2022 adjusted operating profit, depending on the completion dates of the transactions.
Meanwhile, Pearson said it repurchased GBP100 million worth of its GBP350 million shares as part of its buyback programme. This is an increase of GBP25 million from its update in late April, when it said it had so far bought back GBP75 million.
Pearson shares were 0.6% lower at 746.80 pence each in London on Tuesday morning.
By Tom Budszus; tombudszus@alliancenews.com
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Pearson (PSON)