Bertelsmann CEO says it has several billion euros for buys, keen on education sector; denies planning Gruner sale
Bertelsmann, the German media group, needs to make acquisitions in order to fulfill its growth plan, but the current market environment is not favorable for deals, Boersen-Zeitung cited Chief Executive Thomas Rabe as saying.
Rabe was cited as saying that in the current market conditions, Bertelsmann will not succeed in its earlier stated goal of achieving growth solely organically.
The report noted that Bertelsmann's turnover in the first half of this year rose by almost 7% to EUR 7.8bn, but only thanks to acquisitions.
Whereas he earlier stated the goal of Bertelsmann achieving EUR 20bn turnover by 2017, he now says the time scale in which that level of turnover will be achieved will be three to five years, the report said. He also said that acquisitions will play an indispensable role in achieving the goal.
Acquisitions are difficult in the current environment, the report cited him as saying. He said companies are being offered for sale at excessive prices.
Bertelsmann has several billion euros available for buys, Rabe was cited as saying. He said the company will not pay excessive prices. Rabe said investments will be made especially in the education area.
Rabe denied rumors that the company has any plans to sell the German publisher Gruner + Jahr.
Source Frankfurter Allgemeine Zeitung