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Houghton Mifflin Harcourt to Sell Riverside Clinical and Standardised Testing Portfolio to Alpine Investors
Friday 14 September 2018

14 September 2018 - US-based text book publisher Houghton Mifflin Harcourt (HMH) (NASDAQ : HMHC) has entered into a definitive agreement to divest its Riverside clinical and standardised testing portfolio to private equity firm Alpine Investors, for a purchase price of USD 140m, the company said.

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 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.

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.

Once the transition is complete, the business will be known as Riverside and will continue to operate from its current offices in Itasca, Ill. HMH and Alpine will work closely to provide a smooth transition both for employees and customers with a collective goal of having no service disruptions.

The Riverside clinical and standardized testing portfolio contributed approximately USD 80m in billings to HMH in 2017. HMH expects total net cash proceeds of approximately USD 135m which it plans to invest in its Extensions businesses, supporting its strategy to create integrated solutions and improve student outcomes.

HMH's year-to-date results and full year guidance will be adjusted to reflect the sale by its third quarter earnings call.

Houghton Mifflin Harcourt (NASDAQ: HMHC) is a provider of K–12 core curriculum, supplemental and intervention solutions and professional learning services.
Lazard Middle Market served as exclusive financial advisor to HMH and WilmerHale acted as HMH's legal counsel.
Details
Date Published: 14/09/2018
Target: Riverside,  clinical and standardised testing portfolio
Country: USA
Deal Size: 140m (USD)
Sector: Media
Type: Corporate acquisition
Financing: Cash
Status: Agreed
Vendor: Houghton,  Mifflin Harcourt 
Buyer: Alpine Investors
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