Pearson to sell a 22% stake in Penguin Random House to JV partner Bertelsmann for $1 billion.

Pearson PLC is to sell a 22% stake in the Penguin Random House (PRH) to joint venture partner Bertelsmann for approximately $1 billion to bolster its balance sheet and return around £300 million to shareholders.

This sale values the PRH at an enterprise value of $3.55 billion. The transaction is expected to close in September 2017. Pearson’s ownership of PRH will fall to 25%.

John Fallon, Pearson’s chief executive, said: “Combining Penguin with Random House has proved to be a great publishing success, as well as enabling some big cost savings. This has benefited readers, authors, and shareholders. Today’s deal enables Pearson to realise a significant amount of the value we’ve helped to create whilst continuing to be part of the world’s biggest and best trade publisher. We will use the proceeds to maintain our strong balance sheet, invest in our business and return £300m to shareholders.”

The Penguin Random House Board comprises:

Phil Hoffman – Chairman, Penguin Random House
Markus Dohle – Chief Executive Officer, Penguin Random House
Milena Alberti – Chief Financial Officer, Penguin Random House
John Fallon – Chief Executive Officer, Pearson
Coram Williams – Chief Financial Officer, Pearson
Thomas Rabe – Chairman and Chief Executive Officer, Bertelsmann
Thomas Goetz – General Counsel and Head of Legal Department, Bertelsmann
Bernd Hirsch – Chief Financial Officer, Bertelsmann
Gail Rebuck – Member of the Bertelsmann Group Management Committee
Emmanuel Roman – Chief Executive Officer, PIMCO
Lauren Zalaznick – Media Executive

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