Pearson buy Italian educational publisher
Pearson have purchased 80% of Italy’s leading educational publisher Paravia Bruno Mondadori Editori (PBM). While this should be a straightforward transaction there may be some regulatory issues that Pearson will have to address before the deal is completed.
If all goes to plan, PBM is expected to be merged with Pearson Education Italia, with existing PBM shareholders holding a minority stake in the new company. While the exact financial details have not been disclosed it is thought the deal has cost Pearson between £45-50m. The Italian educational textbooks market is estimated to be worth about £424m p.a., with PBM share running at about £48m.
As we wrote last month, Pearson’s education strategy seems to be changing, with an increased emphasis on growth outside its core US market. While part of this change in strategy is due to the appointment of new Chairman Glen Moreno, we also believe this shift is due in part to impending regulatory and structural changes in the US and UK assessment markets where Pearson education earns much of its profits. Non-US assets now only account for about 33% (£750m) of Pearson Education’s £2.359bn turnover.