Octopus Up for Grabs
Amanda-Jane Doran -- Publishers Weekly, 6/4/2001
The London-based publishing firm Octopus Group is up for sale. Founded by Paul Hamlyn, Octopus is now directed by Derek Freeman, who led a management buyout that acquired the company from Reed in 1998 for £33 ($49 million). The acquisition price is expected to be in the region of £90 million, two times Octopus's revenue last year.
Octopus comprises six imprints including Mitchell Beazley, Hamlyn and Conran Octopus, plus the imprints of Bounty and Brimax, which publish in the bargain reprint and preschool markets, respectively. The company also owns Philips, a map and atlas publisher.
A leading candidate to acquire Octopus is WH Smith, which is eager to expand its publishing activities; there is little overlap between Octopus's publishing program and that of Smith's publishing subsidiary, Hodder Headline. A Smith spokesperson did not rule out the possibility that the company may be interested in acquiring the company. Octopus's digital publishing efforts and successful cable TV productions, which use content from their illustrated books, may attract bids from larger media companies such as Pearson and Hachette. Analysts predict a flurry of interest between now and August, when formal talks can take place. Broadview, the U.S. investment bank, is conducting the sale.
