Haights Cross Looking at $25-Million Buy

Haights Cross Communications has signed a nonbinding letter of intent to acquire "a print-based curriculum supplementary publisher" for $25 million to $30 million, the company announced last week. To help finance the transaction, HCC has begun offering new senior notes that it expects will yield gross proceeds of $50 million.

HCC also reported last week that revenue and adjusted EBITDA for the fourth quarter will be "slightly below" the comparable period in 2002, while net income before nonrecurring items will be "substantially below" the fourth quarter in 2002. The company attributed the shortfalls to higher interest expenses, increased spending on product development and weak audiobook sales through retail outlets at its Recorded Books subsidiary plus continued soft spending for library materials produced by Chelsea House. HCC said it could not predict if the trends will continue into 2004.