Hellman & Friedman LLC, a leading private equity firm, announced today that it signed a definitive agreement to acquire from Deutsche Bank AG a 20% stake in Axel Springer AG for €350 million. Axel Springer also announced today its intention to repurchase up to 10% of its outstanding shares through a public tender process. With nearly €2.4 billion in annual revenue, Axel Springer is the largest publisher of newspapers in Germany, including the largest daily newspaper in Europe, and the second largest publisher of magazines in Germany.
Brian M. Powers, the Chief Executive Officer of Hellman & Friedman, will be nominated to join the supervisory board of Axel Springer AG.
“We are delighted to join Dr. Friede Springer as a substantial shareholder in Axel Springer”, Mr. Powers said. “Axel Springer has built a collection of world class mastheads over the past 60 years. The management team, led by Mathias Doepfner, acted very quickly to adapt the business to meet the changed market conditions in Germany. This combination has allowed the Company to continue to offer outstanding publications to its readers and to meet the needs of its advertisers while positioning the company to benefit substantially from any rebound in the German advertising market. We look forward to working with management and the Supervisory Board in the years ahead”
“Hellman & Friedman brings a thorough knowledge of the media and publishing industries,” said Dr. Mathias Doepfner. “We look forward to Brian Powers joining our board and to a long and productive relationship with Hellman & Friedman.”
“Our investment in Axel Springer, combined with our recent investment in ProSiebenSat.1 Media AG, reflects our continued enthusiasm for investing in strong, established franchises in the media and advertising industries,” said Hellman & Friedman Managing Director Patrick Healy, adding “We remain enthusiastic about opportunities in Germany and Europe.”
About Axel Springer AG
Axel Springer is Germany’s largest publisher of newspapers and second largest publisher of magazines. The Company’s flagship title Bild is the largest daily newspaper in Europe, with paid daily circulation of approximately 4 million and reaching an estimated 13 million people daily. Other leading titles include Hamburger Abendblatt, B.Z., Berliner Morgenpost, and Die Welt. Axel Springer is publicly listed (Bloomberg Ticker SPR GR) and trades on the Frankfurt Stock Exchange. For more information, visit www.asv.de or www.axelspringer.com.
About Hellman & Friedman LLC
Hellman and Friedman LLC is a San Francisco-based private equity investment firm. Since its founding in 1984, the Firm has raised and managed approximately $5 billion of committed capital and invested in over 40 companies. The Firm’s strategy is to invest in superior business franchises and a value-added partner to management in select industries including financial services, media, marketing, professional services, and information services. Representative investments include the ProSiebenSat.1(PSM GR); Formula One Holdings, Ltd; the NASDAQ Stock Market, Inc (NDAQ).; Young & Rubicam, Inc.; Arch Capital Group Limited (ACGL); Western Wireless Corporation (WWCA); Voicestream Wireless Corporation; Eller Media Company, Inc.; Franklin Resources, Inc. (BEN); and others. For more information on Hellman & Friedman, visit www.hf.com.