Last checked at 19 Jan 2017 07:00
Thursday 19 January 2017
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATIONS.
Ascential plc
Sale of Health Service Journal for £19m
Ascential plc (the "Group" / LSE: ASCL.L), the international business to business media company with a focused portfolio of market leading events and information services products, today announces that it has agreed the sale of Health Service Journal ("HSJ") to Wilmington plc for a consideration of £19m, payable in cash subject to normal working capital adjustments at completion. The sale is expected to complete on 31 January 2017 and proceeds will be used to reduce Ascential's net debt and invest in the business.
On 5 January 2017 the Group announced that it had separated 13 heritage brands into a separate operating entity and that these brands would develop an independent business strategy while new owners were sought. The sale of HSJ to Wilmington marks the first sale in this process.
HSJ is a leading source of information for both public and private health professionals. In 2016 HSJ generated revenue of £10m and EBITDA of £2.8m*. Its gross assets at June 2016 were £12.8m including intangibles.
Duncan Painter, CEO, Ascential, commented:
"This is the first key milestone in finding the right future home for our Heritage Brands and highlights the attraction of these brands to new owners. HSJ is recognised as a market leader in its sector and I have confidence that Wilmington will provide the right environment for its continued success."
*After deducting depreciation of £0.1m and amortisation of acquired intangibles of £0.6m, profit before tax for 2016 was £2.1m.
For further information, please contact: | |
FTI Consulting LLP | 020 3727 1000 |
Matt Dixon/Ed Bridges/Chris Lane |
About Ascential
Ascential plc is a leading international media company that informs and connects business professionals in 150 countries through market leading Exhibitions, Festivals, and Information Services. Ascential powers the prestigious Cannes Lions Festival for the branded communications industry, the world's premier payments and financial services congress Money20/20, Spring Fair/Autumn Fair, the global fashion trend forecasting service WGSN and environmental risk data business Groundsure.
23 of Ascential's 32 product lines are market leading and occupy number one positions. Ascential exists to provide our customers with world class content and connections empowering their businesses to be the best informed and best connected. Our products enable focus, growth and value.