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Wiley buys Hungry Minds
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August 13, 2001: 9:19 a.m. ET
194-year-old publisher buys owner of For Dummies, CliffsNotes titles
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NEW YORK (CNNfn) - Publishing firm John Wiley & Sons Inc. agreed Monday to buy Hungry Minds Inc., the publisher of the For Dummies series of books, for about $90 million.
The deal, which is expected to be completed in mid-September, values Hungry Minds (HMIN: Research, Estimates) shares at $6.09 each, which is actually well below the stock's closing price Friday of $6.90. Wiley also will assume about $92.5 million in Hungry Minds debt.
"The acquisition of Hungry Minds is an excellent opportunity to accelerate Wiley's revenue and earnings growth and enhance our competitive position in the professional/trade market," Wiley CEO William Pesce said.
Pesce said the deal, which is subject to regulatory clearance and may need Hungry Minds stockholder approval, would be neutral to earnings in 2001 but would be accretive after that. Wiley's professional/trade business made up about a third of the 194-year-old publisher's 2001 revenue.
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In addition to the For Dummies titles, Hungry Minds owns CliffsNotes, Frommer's travel guides, Webster's New World Dictionary and other properties. International Data Group Inc., which owns about 76 percent of Hungry Minds' outstanding stock, has agreed to support the transaction.
Wiley (JW.A: Research, Estimates) shares closed Friday down 5 cents at $20.45. 
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