UBM plc Sells PR Newswire to Cision for $841M

UBM plc UBMOF, one of the world's leading B2B events organisers, today announces that it has reached agreement for the sale of PR Newswire to Cision, a business controlled by GTCR Canyon Holdings (Cayman), L.P., for $841m, comprising $810m in cash and $31m of preferred equity (on a fair value basis). The transaction is a significant step for UBM in executing its "Events First" strategy as it increases the Company's focus on the attractive, high growth global events sector. Following completion of the transaction, £245m is proposed to be returned to shareholders by way of a special dividend, with the remainder retained to provide greater financial capacity to drive the strategy through bolt-on acquisitions Transaction The total sale price of $841m represents excellent value for UBM's shareholders, being a c.11.2 times multiple of PR Newswire's 2014 adjusted earnings before interest, tax, depreciation and amortisation, while the cash value of $810m represents a c.10.8 times multiple Net cash proceeds received on completion are expected to be approximately £498m after adjustments for transaction expenses, debt-like items, tax and a contribution of £10m to UBM's pension scheme