Waverly-Wolters Kluwer deal clears regulatory hurdles $375 million merger may wrap up this week

Publishing

May 19, 1998|By Shanon D. Murray | Shanon D. Murray,SUN STAFF

The federal regulatory review of the proposed merger between Baltimore-based publisher Waverly Inc. and a Dutch company has ended, making way for the $375 million deal to be completed this week, the companies said yesterday.

In March, the Department of Justice's antitrust division requested more information from Waverly and Amsterdam, Netherlands-based Wolters Kluwer N.V. in what is typically a routine review, Waverly officials said at the time.

The review under the Hart-Scott-Rodino Antitrust Improvements Act expired Sunday night without any further government action.

Wolters Kluwer said it expects to complete the purchase of the necessary two-thirds of Waverly's shares shortly after the Dutch company's bid is set to expire at midnight tonight.

Waverly officials could not be reached for comment.

With the acquisition of Waverly, an international publisher of medical and scientific books that owns the Williams and Wilkins publishing label, Wolters Kluwer would become the second-largest medical publisher in the United States.

Wolters Kluwer has operations in 25 countries and annual sales of $2.5 billion. Waverly would be integrated with Lippincott-Raven Publishers, a medical publisher with headquarters in Philadelphia.

Also yesterday, Waverly reported its earnings for the first quarter, showing a net loss of $1.6 million, or 18 cents per share. Revenue for the quarter, which ended ended March 31, was $38.3 million, compared to $39.2 million in the prior year, a 2 percent decline.

Waverly officials said the quarter results included $900,000 in costs tied to its sale to Wolters Kluwer.

Pub Date: 5/19/98

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