The McGraw-Hill Companies, Inc. (NYSE: MHP), today announced that Platts, a division of McGraw-Hill and a leading global provider of energy, petrochemicals and metals information, has signed an agreement to acquire the Steel Business Briefing Group (the SBB Group), a privately held U.K. company and leading provider of news, pricing and analytics to the global steel market. The SBB Group provides subscription-based, electronic products to the steel industry and its participants through two principal businesses, Steel Business Briefing (SBB) and The Steel Index (TSI). Financial terms were not disclosed. The transaction is expected to close onJuly 1 subject to customary closing conditions.
“This acquisition reflects our strategic focus on high-growth global brands and businesses,” said Harold McGraw III, Chairman, President and Chief Executive Officer of McGraw-Hill. “Platts, which derives almost two-thirds of its revenue outside the U.S., is McGraw-Hill’s most global business and is relied upon worldwide for its news, pricing and analytical services for billions of dollars of commodities transactions annually. With world steel consumption projected to increase approximately 60 percent during the next decade, the acquisition of the SBB Group will create new opportunities for Platts, which already generates strong revenue growth and excellent margins. Earlier this year, Platts expanded its platform in market-critical natural gas analytics capabilities by acquiring Bentek Energy.”
“The acquisition of the SBB Group supports Platts’ strategy of expanding its presence in dynamic global commodity markets and immediately boosts our capabilities and the value we can provide to customers,” said Larry Neal, president of Platts. “We intend to build upon the success of the SBB Group’s talented leadership team and its highly respected businesses, SBB and TSI. By joining forces, we can offer a more expansive product mix that better serves the growing global demand for timely, objective information on the steel industry.” Neal further noted that the SBB business will be integrated into Platts and that TSI will continue to operate separately.
“We are delighted to team up with Platts,” said Patrick Flockhart, the SBB Group’s chief executive officer. “We share a common commitment to providing top-quality news, prices, analysis and events that serve the global steel supply chain and we look forward to working together to enhance the value of our offerings and the benefits we bring to our customers and the market world-wide.”
Founded in 2001, the SBB Group is headquartered in London with seven global offices and a staff of more than 180. The Group’s original business, Steel Business Briefing, is primarily a subscription business comprising a mix of daily news, weekly reports, prices and analytical publications delivered electronically. The Steel Index, launched in 2006, is a specialist price information business focused on compiling indices through the collection of transaction price data from industry participants.
Source: PR Newswire