Proposed merger of Elsevier & Kluwer publishers Gaele Gillespie 21 Oct 1997 23:39 UTC
I've not seen any information pertaining to the proposed merger of Elsevier and Kluwer publishers on SERIALST, so I'm forwarding the attached press release for posting to the list. Many thanks to Judy Johnson at University of Nebraska-Lincoln for answering my curiosity questions about Kluwer this afternoon by forwarding me a copy of the press release! -- gaele E. Gaele Gillespie / Serials Librarian / University of Kansas Libraries 210 Watson / Lawrence, KS 66045-2800 Internet: ggillesp@ukans.edu / Bitnet: ggillesp@ukanvm Voice: 785-864-3051 / Fax: 7685-864-3855 (if busy, use 785-864-5311) ------- Forwarded Message Follows ------- Date: Mon, 13 Oct 1997 16:46:47 -0500 From: mwhite@MAIL.UTEXAS.EDU (Molly White) To: SLAPAM-L@lists.yale.edu Subject: AP on Elsevier/Kluwer [The Boston Globe Online][Boston.com] ----------------------------------------------------------- Reed Elsevier, Wolters Kluwer to form publishing powerhouse Associated Press, 10/13/97 15:47 AMSTERDAM, Netherlands (AP) - The owner of Lexis-Nexis and a slew of trade magazines made a big push to boost its electronic information business Monday by merging with one of its biggest rivals. Reed Elsevier, the world's largest publisher of academic and trade journals, is combining with Dutch publisher Wolters Kluwer in a deal that values Wolter at about $7.8 billion. The marriage would create a publishing powerhouse, Elsevier Wolters Kluwer, that would have had $6.6 billion in combined sales last year with operations in North America, Europe and Asia. ``The main thing is that they can now together make the large investments needed for the change from print publishing to electronic publishing,'' said Reinier Westeneng, an analyst with Stroeve Bank in Amsterdam. The new group will continue to aggressively seek acquisitions, Elsevier director Herman Brugging said. Electronic publishing will grow to 30 percent of the combined companies' sales in the near future, up from 20 percent now, he added. Since buying Lexis-Nexis three years ago, Reed has focused on purchases, especially in the United States, to augment its presence in online publishing and other electronic data. To add to Lexis-Nexis - a huge database used by lawyers, libraries, students and other subscribers - the Anglo-Dutch company said it would buy Chilton Co., which publishes 39 U.S. trade magazines, from Walt Disney Co. for $447 million. Chilton would be combined with Reed's existing trade-magazine group, Cahners Publishing Co., to build a print and online library of about 130 journals worldwide, including the Hollywood magazine Variety. Also this year, Reed agreed to acquire MDL Information Systems Inc., a California company that sells databases and software to scientists in the pharmaceutical and chemical fields. Reed also is the world's largest publisher of scientific journals, with more than 1,200 titles, and serves other markets including the legal, travel and medical fields. Wolters Kluwer last year bought CCH Inc., a big U.S. business publisher and database company, for $1.9 billion. The Dutch company has been steadily acquiring professional publishing businesses while selling off non-related units. The deal with Wolters Kluwer needs approval by shareholders of co-owners Reed International PLC and Elsevier NV, as well as Wolters holders. News of the merger surprised financial markets, pushing Elsevier shares up 17 percent and Wolters up 4 percent in heavy trading in Amsterdam. Reed shares jumped 18 percent in London. Nigel Stapleton, co-chairman of Reed Elsevier, said he expects the merger to be completed in the first quarter of 1998. If the deal is approved, Wolters shareholders will receive 7.85 shares in the new company for each share they now hold. Reed shareholders will own 38.3 percent of the combined company, while Elsevier and Wolters holders will control 34.2 percent and 27.5 percent, respectively. The dual holding structure of Reed Elsevier will also apply to the new company. The two holding companies, Reed and Elsevier Wolters Kluwer, will maintain their separate listings on the London and Amsterdam stock exchanges.