London — British education company Pearson said on Wednesday it would sell its remaining 25% stake in publisher Penguin Random House to German partner Bertelsmann, generating net proceeds of about $675m.
The deal will end Pearson's association with consumer publishing that stretches back nearly 50 years to 1970 when it bought the company that had published “Lady Chatterley's Lover” a decade earlier.
The sale values the joint venture, created in 2013, at $3.67bn, Pearson said, adding it would return $350m to investors through a share buyback.
The group also said CEO John Fallon would retire in 2020 once a successor had been appointed.
“For almost 50 years, Pearson has been proud to play our part in the publishing and commercial success of first Penguin and then more recently Penguin Random House,” Fallon said in a statement.
He said the disposal would enable Pearson to focus on its digital learning operations.
Penguin Random House reported revenue of $3.7bn and operating profit of $467m in 2018, and £68m after tax to Pearson's adjusted operating profit.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.