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UBM Acquisition Amid NOP Sale Speculation
NOP's parent company United Business Media has today announced that it is set to acquire medical trade press and other healthcare information services in France to the value of Euros 36 million. The move is unlikely to dampen UK press speculation about a possible sale of NOP with the changeover of Group CEO due in April.
Rumours appeared in the Mail on Sunday and yesterday in the Telegraph, suggesting that Chief Exec Lord Hollick, who steps down as owner of UBM in April, was 'mulling' a possible sale of the research giant. The articles touted a price of £250m. However, at present there have been no specific statements from the company, with sources dismissing the figure, and no hard evidence has been produced. Speculation centres around a number of factors:- Hollick is leaving to join a venture capital firm in April
- David Levin, his successor as CEO, is 'thought to hold NOP in less high regard' than the peer, who has built up the company over many years and formed the current group, NOP World, three years ago
- Levin has in-depth experience of publishing and media industries and the single biggest activity of UBM is currently Professional Media, 61.3% of the group's turnover in the 2004 interim results versus 26.1% for market research.
Levin is aged 42, currently CEO of Symbian Limited and has worked in various global locations in roles including COO of Euromoney Institutional Investor.
Whether all these twos add up to an even number, time will tell, but today's announcement may be cited as evidence of an ongoing refocusing of the group. The French companies are currently owned by MediMedia and would become part of CMPMedica France, itself acquired by UBM during 2004. The new acquisitions, including leading medical journals such as Le Quotidien du Medecin and Le Generaliste, would complement the existing major drug directory business, Vidal, giving 'scope to expand the major brands into customised services and content-based marketing', according to UBM.
The purchase price is EUR 36 million in cash, and the completion of the transaction is subject to satisfactory completion of the contract and related conditions. In 2004 the business generated approximately EUR 60m of turnover and EUR 6m of profit before tax.
Commenting on the potential acquisition, Hollick says 'Healthcare is now the largest sector served by United Business Media and prospects for growth in the 23 markets we cover, and in the increasing range of products we offer, are most promising'.
| UBM 2004 Interim results: |
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Professional Media: |
News Distribution: |
Market Research: |
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Turnover |
£233.4m |
£47.7m |
£99.4m |
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Operating Profit |
£41.7m |
£11.6m |
£10.5m |
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Operating Margin |
17.9% |
24.3% |
10.6% |
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UBM is online at www.unitedbusinessmedia.com and NOPWorld at www.nopworld.com
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