London newspaper The Observer reported Apollo's entry
into the auction for Reed Elsevier plc's trade magazine unit, which includes Variety.
Apollo joins an already crowded field of PE bidders, which includes 3i Group plc, Apax
Partners Worldwide LLP, Candover Partners Ltd., Carlyle Group, Cinven
Ltd., Permira Advisers LLP, TPG Capital and Providence Equity Partners
Inc. Additionally, there is a bevy of strategics interested in Reed Business Information including
Bertelsmann AG, McGraw-Hill Cos., United Business Media Ltd. and Gruner + Jahr AG. First-round bids for the unit reportedly ranged between $2 billion and $2.75 billion. The growing field of bidders is a vast change from when Reed put the unit on the block in February, when interest seemed tepid at best.
Apollo's Reed bid could be seen as part of its aggressive European expansion, which it officially announced a few weeks ago. In August the firm announced a nonexclusive partnership with Lazard to make deals in Europe, and Apollo's co-founder and president Joshua Harris moved from New York to the firm's London office. The firm is also in the midst of raising a $3 billion European-focused distressed debt fund. - George White
See Observer story
See Dealscape post on auction
See story on Reed auction on TheDeal.com
See data from Auction Block
See story on Lazard partnership on TheDeal.com
See Dealscape post Joshua Harris move
See Dealscape post on distressed debt fund
Comments
Apollo Management LP has reportedly thrown itself into the auction for Reed Business Information as the U.S. buyout firm continues to rapidly increase its presence in Europe.
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