Newspaper and magazine wholesaler Smiths News has agreed to acquire Dawson in a deal worth £20 million.
Newspaper and magazine wholesaler Smiths News has agreed to acquire Dawson in a deal worth £20 million.
Dawson, which supplies books to universities and further education institutions, is expected to generate synergies of £3.8 million, annually according to a statement released by Swindon-based Smiths News.
Mark Cashmore, chief executive of Smiths News, says that the deal creates an opportunity to strengthen one of its core businesses, Bertrams
Smiths News was formed in 2006 following the demerger of WH Smith.
Chief executive of Dawson, Hugh Cawley, comments: ‘The board of Dawson believes that Smiths New’s offer, by providing the certainty of a cash offer at a significant premium to Dawson’s price, is an excellent outcome for shareholders.
‘This follows the Board’s successful restructuring and turnaround plan, which rescued the Dawson Group from the risk of administration and more recently returned the group to profit growth.’
The deal is said by Surrey-headquartered Dawson to enable the next stage of its development as part of an enlarged group.
Smiths News is to use the acquisition to expand its book business, Bertrams.
As part of the deal Dawson has agreed a full settlement of all outstanding payments and liabilities.
