Wendel signs off Editis to Planeta

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Wendel has entered exclusive negotiations with Grupo Planeta to sell the group its publishing portfolio company Editis for EUR1.026bn. Wendel initially acquired Editis from Lagardere in 2004 in an LBO deal worth EUR660m. Wendel at the time had promised a long-term strategy, however since the investment generated 3x returns in four years the exit was said to be justifiable.

The deal will see Wendel get around EUR500m in capital since the company carries around EUR450m debt. The auction process saw Planeta fend off a rival bid from Media Participations, the owner of Dargaud and Dupuis.

Planeta is the largest publisher in Spain and Latin America. Editis is active in most segments of French language publishing and has around 40 brands including names such as Plon, Robert Laffront, Nathan and Pocket.

Under the Wendel era and the management of Alain Kouck, the former chairman of Lagardere, the company had staged seven build up operations worth around EUR150m. The company has around 2,600 employees and generated EUR760m turnover in 2007 EUR48.9m of which was profit. Following the acquisition of Editis, Grupo Planeta, which is the property of the Lara family, will be the eighth-largest publisher globally. Natixis, Calyon and BNP Paribas will refinance Editis' EUR450m debt as part of the deal. (Page 42)