Office Depot, Inc. today announced that the merger agreement between Staples, Inc. and Office Depot has been terminated. As a result, Office Depot will receive a cash payment from Staples of $250 million on May 19, 2016. Simultaneously, Office Depot announced that it has successfully extended its asset-based credit facility for an additional five years. The new $1.2 billion facility will mature on May 13, 2021. The amended credit agreement reduces the overall fees and applicable spread on borrowing and modifies certain covenants to provide additional flexibility for incremental indebtedness, acquisitions, asset sales and restricted payments.
Global learning company Houghton Mifflin Harcourt (HMH) (Nasdaq: HMHC) today announced that it has entered into a definitive agreement to divest its Riverside clinical and standardized testing (Riverside) portfolio to Alpine Investors, a private equity firm based in San Francisco, for a purchase price of $140 million. The divestiture will enable HMH to sharpen its focus on integrating best-in-class curriculum, embedded formative assessment and professional development to drive improved student outcomes.
Alpine will acquire the Riverside portfolio, which includes the well-regarded brands in the Woodcock-Johnson family, the Cognitive Abilities Test (CogAT), Iowa Assessments and the distribution of Battelle Developmental Inventory (BDI) amongst other assets. HMH will retain assessment solutions critical to effective differentiation of classroom instruction, including Reading Inventory, Math Inventory, Phonics Inventory and Reading Counts.
“HMH is committed to improving outcomes for students and teachers; we believe this divestiture will allow us to sharpen our focus on that goal,” said Jack Lynch, President and CEO, HMH. “The Riverside offerings have enduring legacies. We believe that the agreement with Alpine provides the best path forward regarding both HMH’s strategic focus and the long-term success of these products.”
As part of the agreement, certain HMH employees will join Alpine, a values-driven private equity firm focused on building enduring businesses and fostering exceptional leadership, including the portfolio’s senior leadership team, which brings decades of collective expertise in the clinical and standardized testing space.
more detail at: https://www.hmhco.com/about-us/press-releases/hmh-divestiture-of-riverside-clinical-and-standardized-testing-portfolio