Press Release 29/4/2011 09:30
Sanoma acquires the assets of the Finnish educational publisher Tammi Learning and all the shares of the Swedish educational publisher Bonnier Utbildning AB from the Swedish media group Bonnier AB. At the same time, Sanoma sells the shares of its Finnish general literature publisher Werner Söderström Ltd. (WSOY) to Bonnier. The transaction of WSOY is subject to the approval of the Finnish competition authorities. The closing of the transaction is expected during the autumn.
Currently Sanoma has learning operations in Finland, the Netherlands, Belgium, Hungary, Poland and Russia. The total net sales of Sanoma's learning business were EUR 249 million in 2010. This transaction is in line with Sanoma's strategy to focus its operations and to concentrate on consumer media and learning solutions.
"Learning solutions are one of Sanoma's key focus areas. These transactions are logical steps for us as they support our ambition to grow this business and focus our operations," says Harri-Pekka Kaukonen, President and CEO of Sanoma.
"We are delighted with this transaction which brings us to the Swedish learning market and strengthens our Finnish learning business. Both Bonnier Utbildning and Tammi Learning are excellently performing learning companies, which extend well our portfolio," says Jacques Eijkens, CEO of Sanoma Learning & Literature. "Sanoma is committed to providing high-quality learning materials and solutions that help pupils to achieve great learning outcomes. Moreover, we are developing workflow solutions that serve teachers in their professional work and in numerous daily tasks. We are applying our extensive expertise, technology and resources to this purpose."
"WSOY has a great history. Bonnier has exceptionally long history in publishing and their dedication of books extends back 200 years. General literature is in the core of Bonnier's operations. This deal provides WSOY's premium general literature with a good home and the right management support and resources to develop the business further," Kaukonen continues.
"Bonnier has a long and successful publishing tradition that builds on the philosophy of nurturing the specific needs, strengths and potential of individual publishing houses in their home markets," says Jonas Bonnier, CEO of Bonnier AB. "WSOY with its unique position in the Finnish literature and remarkable line of authors is a wonderful addition to the Bonnier Publishing family."
In 2010, net sales of Tammi Learning, Bonnier Utbildning and WSOY General literature were EUR 10.2 million, EUR 17.6 million and EUR 32.5 million, respectively. Tammi Learning and Bonnier Utbildning employed some 80 people (FTE) and WSOY General Literature some 100 people. The transaction is estimated to improve Sanoma's profitability from 2012 onwards.
Following the transaction with Bonnier, the net sales of Sanoma Learning & Literature in 2011 are estimated to be at the previous year's level and operating profit excluding non-recurring items is expected to decrease somewhat. Previously, the net sales of Sanoma Learning & Literature were estimated to increase slightly and operating profit excluding non-recurring items was expected to be at the previous year's level. Learning business has a strong seasonality within the year, the first and fourth quarter being typically loss-making. For general literature, on the other hand, the fourth quarter is typically the strongest one. Due to this seasonality, this transaction will lower Sanoma Learning & Literature's fourth quarter result in 2011.
Sanoma and Bonnier will hold a joint press meeting in English at 11:00 am (EET) at Adams-Sali, Erottajankatu 15-17, Helsinki, Finland. In the meeting, questions can be asked also in Finnish or Swedish.
Chief Financial Officer
Harri-Pekka Kaukonen, President and CEO, Sanoma Corporation tel. +358 105 19 5021
Maria Curman, CEO, Bonnier Books, tel. +46 70 884 8910
Sanoma's Investor Relations:
Kare Laukkanen tel. +358 105 19 5064 and Anna Tuominen tel. +358 105 19 5066 or email@example.com
Sanoma inspires, informs and connects. As a diversified media group, we bring information, experiences, education and entertainment to millions of people every day. We make sure that quality content and interesting products and services are easily available and meet the demands of our readers, viewers and listeners. We offer a challenging and interesting working environment for nearly 20,000 people in over 20 countries throughout Europe. In 2010, the Group's net sales totalled EUR 2.8 billion.
Sanoma Learning & Literature is a leading European provider of learning materials and solutions in print and digital format. The Division has also growing international business information and language services operations. Sanoma Learning & Literature operates in fourteen countries and provides nearly 2,700 employees with inspiring opportunities to work. In 2010, Division's net sales totalled EUR 350 million.
Bonnier is an international media group active in television, newspapers, magazines, movies and cinemas, books and digital media. With our base in the Nordic region and substantial operations in the U.S., Germany, the U.K. and Eastern Europe, we have businesses in 17 countries worldwide and employ over 10,000 people. Since 1804 we have published high-quality media products. Bonnier stands for entrepreneurship and has always combined a genuine commitment to freedom of speech with a sense for business. Bonnier is wholly owned by the Bonnier family, which has been running the company for seven generations.
Bonnier Books includes five groups: Bonnierförlagen in Sweden, Cappelen Damm in Norway, Bonnier Media in Germany, Bonnier Publishing in England and Tammi in Finland. These groups include a total of 30 publishing houses in seven countries, covering the genres fiction, non-fiction, children's literature and educational.