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VNU Sells Directories Business
VNU, parent of ACNielsen, Nielsen Media Research and others, has announced that it has signed a definitive agreement to sell its World Directories group to World Directories Acquisition Corp. for EUR 2,075 million. The buyer is a legal entity owned by funds advised by Apax Partners Worldwide LLP and Cinven Limited.
VNU intends to use at least half of the proceeds to repay debt and strengthen its balance sheet, as it focuses on its core information and measurement activities. The sale includes all operating companies and directly related activities of World Directories, which produces telephone books and yellow pages directories both in print and on-line. World Directories is market leader in the segment in each of the seven countries where it does business: Belgium, the Netherlands, Ireland, Portugal, Romania, Puerto Rico and South Africa, and employs approximately 2,200 people. In 2003 it generated EUR 492 million in revenues and EUR 211 million in operating income.
VNU Chairman and CEO Rob van den Bergh stresses the important role that World Directories has played in the growth and success of his company but says the transaction 'allows us to focus on our high-growth core marketing, media measurement and business information activities. I am convinced that we have found a good new owner for the group, who will continue to grow the business'.
Brian Linden, Cinven Partner, describes the acquired company as 'a very stable, high margin and cash generative business with significant growth opportunities both in print and on-line... We have a proven track record of investing in the media sector and today's acquisition is in line with our focus of backing leading European businesses with compelling growth prospects'. Apax Partners Funds also has previous experience of the sector from investments in Yell and Thomson Directories.
The transaction is subject to customary conditions, including approval by relevant antitrust authorities and advice from the central workers council, and will be discussed at an EGM of Shareholders. The transaction is expected to close by the end of 2004. VNU's web site is at www.vnu.com
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