• EQT V to buy 82% and GIC to buy 18% of Springer Science+Business Media, the world’s second-largest scientific, technical and medical publisher, and a leader in the digitization of scientific information
• Company Management expected to re-invest
EQT V, a leading European private equity fund, and GIC Special Investments (“GICSI”), the private equity arm of the Government of Singapore Investment Corporation (“GIC”), announce that they have agreed to acquire 100% of Springer Science+Business Media (“Springer“), from its current owners, private equity investors, Candover and Cinven. EQT V intends to buy 82% and GICSI to buy 18% of Springer, the world’s second-largest scientific, technical and medical (“STM”) publisher, and a leader in the digitization of scientific information. The transaction remains subject to customary conditions, including regulatory approvals. It is expected to close by late January/early February 2010, and will result in the full repayment of all existing debt facilities.
“Springer is perfectly positioned in a market where we see great growth potential. We believe that by working together with the company and the best-in-class management team under CEO Derk Haank we can drive both expansion and further development of the successful e-business” says Marcus Brennecke, Senior Partner at EQT Partners, advisor to EQT V. “As the number 2 player in the STM sector, Springer is a great platform for further consolidation and market share growth“ Marcus Brennecke added.
EQT has a strong track record of fostering growth and value creation in the more than 70 companies that it has invested in over the last 14 years. EQT’s strategic vision is to provide the most successful investment organization and network of industrialists to those companies in which the funds operate by combining entrepreneurship, industrial thinking and financial discipline. The funds invest in companies in which EQT can act as a catalyst for change and growth and to transform companies into global or regional leaders by making genuine and sustainable improvements. Since EQT’s first acquisition in 1995, the average annual growth in its portfolio companies has been 13%, the number of employees has increased by 12% and earnings by 20% annually.
EQT V intends, together with Springer’s management and GICSI, to drive the transformation to an online STM publisher as well as to further expand the market leading STM book publishing business.
Derk Haank, Springer’s CEO, said “The Springer Executive Management Team has had constructive and collegial discussions with EQT V and I am confident that this marks the beginning of a new exciting and successful chapter for us and for our new partners at EQT V. The sale will allow us to move our ambitious and ongoing “e” strategy forward, and to invest more heavily for our stakeholder’s benefit – this is the best solution for the company, our employees and shareholders.”
EQT V was advised on the transaction by Deutsche Bank, Unicredit Group and Barclays Capital. Goldman Sachs International, Unicredit Group, Barclays Capital, and Deutsche Bank have been mandated to arrange and underwrite the financing.
The transaction marks EQT´s 18th investment in Germany.
Marcus Brennecke, Senior Partner +49 89 255 49920
Johan Hähnel, Communications & PR +46 8 506 55 334
EQT is a group of leading private equity funds with investments in Northern Europe, Central and Eastern Europe, USA and Asia. EQT manages funds active within buy-outs, growth financing and infrastructure. EQT deploys a unique industrial approach to investing, utilizing a vast network of industrialists to identify and develop companies. EQT’s model is based on clear corporate governance. The EQT funds mainly acquire or finance market leaders with considerable growth potential.
EQT acts as a catalyst for change in the companies that the funds invest in. The companies develop into market leading players through genuine and sustainable operational improvements. EQT has raised approximately EUR 13 billion in 12 funds, which have invested approximately EUR 7 billion in more than 70 companies. EQT owned companies have more than 500,000 employees.
Since EQT’s first acquisition in 1995, the average annual growth in its portfolio companies has been 13%, the number of employees has increased by 12% and earnings by 20% annually. More than 90% of the value creation is attributable to growth, strategic repositioning and increased earnings.
EQT Partners is advisor to all EQT funds and has more than 100 investment professionals with an extensive industrial and financial competence. EQT Partners has offices in Copenhagen, Frankfurt, Helsinki, Hong Kong, London, Munich, New York, Oslo, Shanghai, Stockholm, Warsaw and Zurich.
More information about EQT can be found on www.eqt.se
GIC is a global investment management company established in 1981 to manage Singapore's foreign reserves. With a network of eight offices in key financial capitals around the world, GIC invests internationally in equities, fixed income, natural resources, treasury & currencies, real estate, private equity and infrastructure. GIC Special Investments (GICSI), the private equity arm of GIC, is one of the world's largest private equity investors and manages a multi-billion dollar portfolio of fund investments and direct investments in companies.
About Springer Science+Business Media
Springer Science+Business Media is a leading global scientific publisher, delivering quality content through innovative information products and services. The company is also a trusted provider of local-language professional publications in Europe, especially in Germany and the Netherlands. In the science, technology and medicine (STM) sector, the group publishes around 2,000 journals and more than 6,500 new books a year, as well as the largest STM eBook Collection worldwide. Springer has operations in about 20 countries in Europe, the USA, and Asia, and has more than 5,000 employees. In 2008, it generated annual sales of around EUR 892 million.
More information about Springer can be found on www.springer.com
EQT is a group of private equity funds that has raised approximately €13 billion in 12 funds. EQT Partners, acting as investment advisor to all EQT funds, has offices in Copenhagen, Frankfurt, Helsinki, Hong Kong, Oslo, London, Munich, New York, Shanghai, Stockholm, Warsaw and Zurich. EQT funds realise their business concept by acquiring, financing and developing high-quality medium-sized companies in Northern and Eastern Europe, North America and Asia. EQT serves as an active owner and works in close cooperation with the management of the companies it acquires, to develop and implement value-enhancing strategies. In total EQT funds have invested in more than 70 companies.