Pearson courseware unit attracts trade, sponsors in first round

Non-binding offers were due by 12 January. The division is being marketed based on annual EBITDA in the region of GBP 55m from revenues of GBP 220m, according to two of the sources. Suitors received information memorandums late last year, one of them added.

The unit encompasses international courseware and local publishing assets in nine markets – Australia & New Zealand, Brazil, Canada, Germany, Hong Kong, India, Italy, Mexico, and South Africa – and could be sold as a whole or on a piecemeal basis, according to the sources.

Among sponsors, Sun European Partners, Epiris and Platinum Equity signalled preliminary interest, one of the sources said. Prior to the deadline for non-binding offers, Aurelius had also shown interest in the business, according to the third source. Nexus Capital Management, the buyout group that in 2019 bought Pearson's US K12 courseware division for USD 250m, was also expected to look, another source added.

Strategic bidders hovering over Pearson's courseware unit include Finland-listed Sanoma, two of the sources said. In December 2020, Sanoma acquired Santillana, a Spain-based provider of K12 learning materials.

Before Christmas, Italy-headquartered publisher Zanichelli had also shown interest in the Italian arm of Pearson's unit, while Australia's Matilda Education was circling the Australian and New Zealand entities, one of the sources added.

The sale last June of Infinitas Learning, a Netherlands-based educational publisher, to NPM Capital is a comparable transaction, the third source noted.

News of BNP Paribas's mandate to explore a sale of Pearson's global K12 courseware unit was first reported last April by trade publication EducationInvestor Global. The business comprises "mostly physical" assets, such as educational resources, textbooks, curriculums and supporting materials, sold to schools worldwide and used by teachers and students, the article stated.

Founded in 1844 and a FTSE 100 constituent, Pearson publishes physical and e-textbooks, sells learning resources, and also operates online schools. The company focuses on five educational verticals: virtual learning, higher education, English-language tuition, workforce skills, and assessment and qualifications.

Pearson declined to comment.

Platinum Equity, Aurelius, Zanichelli, Sun European Partners, Epiris, Nexus Capital Management, Sanoma and Matilda Education did not respond to requests for comment.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Buyouts
• UK / Ireland
• Media