McGraw-Hill continues retreat from B2B publishing
When I joined, in 1991, I was shocked to find that the company no longer considered itself a publisher, but a financial services company that just happened to have a few legacy magazines (and a killer textbook publishing division).
Now the company has announced that it has sold off Aviation Week to Penton Media, the Wasserstein & Co.-backed B2B media company.
My last direct contact with McGraw-Hill was when I was invited to interview for a slot with Aviation Week, but it would not have been a good match, that’s for sure.
In any case, here is the official announcement from McGraw-Hill:
McGraw Hill Financial to Sell Aviation Week to Penton
NEW YORK, July 24, 2013 — McGraw Hill Financial (NYSE: MHFI) today announced it has signed a definitive agreement to sell Aviation Week to Penton, a privately held business information company. Terms of the all-cash transaction, which is expected to close shortly, were not disclosed.
“Today’s announcement is another important step in the development of McGraw Hill Financial. This action allows us to apply even greater focus on our high-growth, high-margin benchmark businesses serving large and growing capital and commodity markets around the world,” said Harold McGraw III, Chairman, President and CEO of McGraw Hill Financial. “Aviation Week is a premier franchise in the civil and defense aerospace industry. We’re pleased the business has found a strategic fit and a good home with Penton, which is a respected business information and marketing company and has complementary assets and capabilities.”
The transaction continues the execution of the Company’s strategy of exiting non-core assets while investing for growth in markets where it has size and scale. Earlier this year, the Company sold McGraw-Hill Education as part of its Growth and Value Plan; in 2011, it divested its nine-station Broadcasting Group to The E.W. Scripps Company; and in 2009, the Company sold BusinessWeek to Bloomberg L.P.
These changes, in combination with recent investments, have created a leading financial intelligence company with the mission of promoting sustainable growth by bringing transparency and insights to the global capital and commodity markets.
In 2012, the Company completed a number of tuck-in acquisitions, including Kingsman, SA; QuantHouse; R2 Financial Technologies; Coalition Development Ltd.; CMA Ltd.; and formed the joint venture S&P Dow Jones Indices. And on July 24, 2013, the Company initiated a voluntary tender offer for up to 15.7 million shares of CRISIL Limited, a publicly traded credit ratings and research company in India, which, if fully subscribed, would increase the Company’s ownership in CRISIL from approximately 53% to 75%. These investments deepen and broaden McGraw Hill Financial’s capabilities in high-end analytics, research, benchmarks and price assessments in financial markets around the world.
“The combination of Aviation Week and Penton Aviation creates the largest and most powerful targeted marketing platform for companies and executives in the dynamic and growing global aviation industry,” said David Kieselstein, CEO of Penton.
Aviation Week serves over 1.2 million professionals in 185 countries and is the largest information and services provider to the global commercial, defense, maintenance/repair/overhaul (MRO), space and business aviation communities. It is anchored by its flagship Aviation Week & Space Technology.
The transaction is subject to customary closing conditions.