Informa to dispose of five corporate training businesses

Informa plc (“Informa” or the “Group”), a leading Academic Publishing, Business Information and Events Group, today announces it has signed a definitive agreement to sell its five Corporate Training businesses to Providence Equity Partners (“Providence”) for a total consideration of up to $180m.

The initial consideration of $165m, consists of $100m in cash (net of indebtedness and working capital adjustments on completion) and a $65m vendor loan*. The cash element of the consideration will initially be used to reduce Group net debt. A further cash payment of up to $15m will be received by Informa in 2014 dependent upon the businesses achieving a certain level of revenue in 2013.

In the year ended 31 December 2012, the contribution attributable to the Corporate Training businesses was revenue of approximately $194m (£122m) and adjusted EBITA of $23.5m (£14.8m). As at 31 December 2012 the business had gross assets of $358.8m (£225.7m).

The Group believes the consideration is an attractive price for these assets in the current economic environment. The disposal is in line with Informa’s stated strategy to focus on high quality subscription assets, resilient events and businesses with strong digital and emerging market prospects. The Group continues to search for attractive opportunities in core growth areas such as exhibitions and data subscriptions and, in due course, would anticipate reinvesting some or all of the proceeds.

The disposal is subject to customary regulatory approvals and is expected to complete in the third quarter of 2013.

*The vendor loan is for a maximum term of 6.5 years and attracts a PIK interest rate of 1% in the first two years, rising to 10% in the third year with a further 1% per annum increase thereafter.

For the full story click Informa