All the money's in the Arab world, a slick of oil money that the sheiks are keen to spend on...on just about anything.
How about educational materials, says Barry O'Callaghan of HMRiverdeep et. al. He's struck a deal with the government of Dubai, and the little minnow that swallowed a whale has gone global.
The International arm of Education Media and Publishing Group/Houghton Mifflin Harcourt etc. will be jointly owned by EMPG and Istithmar World Capital, which is the government of Dubai in fancy dress for this particular party. The new venture is valued at $125 million, which should go a long way towards paying down some of that debt that accrued with the series of acquisitions that created EMPG.
There's educational materials publishing business to be found in places like the Middle East and the Far East, and the newly formed company will be targeting the rest of the world as its market. The kids have to be taught everywhere, don't they, and they need books and programs and on-line teaching aids and all the rest.
Things can only get bigger for the minnow, with a cash injection of $125 million injection that's been described as "an initial equity commitment". Sounds like there might be more oil money flowing down the pipe in the future.
Crispin Osborne has been tapped to run the show, a trusted financial guru who once toiled at Credit Suisse (once home to you-know-who) and Citigroup. And who better to manage an educational materials publishing concern than a man who knows money?
So it's not all about finding synergies. Sometimes it's about finding someone with the financial means to keep a whale of a conglomerate afloat.
Merry Christmas, and a festive Eid. Which way is Mecca?
1 comment:
Any comments regarding the article in the Irish Times (a couple of Sundays ago) about EPMG's liquidity and the credit agencys' concern about meeting bank covenants?
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