Pearson Sells U.S. Textbook Business

Posted on 2/18/2019 by Jim Pickerell | Printable Version | Comments (0)

Pearson has sold its U.S. schools course materials business to the private equity groups Nexus Capital Management LP for $250 million.

Nexus will pay an initial $25 million and a further $225 million by way of a vendor note due in the next three to five years for the business, which provides textbooks and resources for students from kindergarten to 12th grade.

Chief executive John Fallon said U.S. school publishing had been an important part of Pearson for many years, and he was pleased to have found a new owner committed to its future. “The sale frees us up to focus on the digital first strategy that will drive our future growth,” he said.



Pearson has been trying to find a buyer for this division of their company for more than a year.

Following the repayment of the vendor note, Pearson said it was entitled to 20% of all future cash flows to equity holders and 20% of net proceeds in the event the business is sold.



According to Nexus Capital Management the additional consideration had been structured to provide Pearson with the potential to capture future upside in the US K12 courseware adoptions market over the coming years.


Copyright © 2019 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-461-7627, e-mail: wvz@fpcubgbf.pbz

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.  

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