Springer Science: EQT opts for €3.3bn sale to BC Partners

Despite EQT having announced a strict IPO focus for Springer last Friday, the firm agreed to a sale after BC Partners returned with a revised offer.

The enterprise value includes a performance-related component, which allows EQT to benefit further from the development of the company. EQT and GIC will remain as minority shareholders.

The transaction is subject to customary regulatory approvals and is expected to close in August 2013.

EQT was reported to have pulled out of a sale in January this year after having appointed investment banks to solicit offers and identify IPO opportunities for the business on the Frankfurt stock exchange in late 2012. However, rumours of renewed talks emerged a few weeks later, with Carlyle, Providence, KKR and BC Partners apparently in line to bid for the asset.

BC Partners aims to expand Springer's core subscription business, as well as focus on open-access publishing and emerging markets.

EQT acquired Springer from Candover and Cinven in 2009 in a buyout valued at €2.3bn. Singaporean sovereign wealth fund GIC also took a minority stake in the deal. A €1bn debt package was arranged and underwritten by Goldman Sachs International, Unicredit, Barclays Capital and Deutsche Bank.

Since the acquisition, EQT has installed an industrial board with media and database experts to support the management team. The owners also invested a further €304m. The company increased sales by 6.4% to €981m and EBITDA by 12.6% to €341m in 2012.

Company
Based in Berlin, Springer is a global scientific, technical and medical publisher. It sells academic content, primarily journals, databases and books, to academic research libraries and libraries of research-intensive institutions.

Springer operates in 22 countries across six continents. The group posted revenues of €981m in 2012, with a €341m EBITDA. The company employs in excess of 7,000 people.

People
Marcus Brennecke is a partner at EQT. Ewald Walgenbach is a managing partner at BC Partners. Derk Haank is the CEO of Springer.

Advisers
Equity – Freshfields Bruckhaus Deringer (Legal).

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