News

OUP set for acquisitions hunt

12.09.11 | Tom Tivnan

Oxford University Press c.e.o. Nigel Portwood has signalled a new strategic direction for the publisher by saying he will be looking to acquire other businesses more ambitiously.   

Speaking in an exclusive interview in today’s Bookseller, Portwood said: “We’ve had a history of organic growth, but in my experience acquisitions are an effective way of achieving growth and acquiring new skills. So it is one of the questions I asked when I took the job: ‘Why haven’t we done more acquisitions?’ The university told me that it wasn’t really part of the culture.”

He continued: “Will we be able to make a transformative acquisition? We would be able to financially, but I’m not sure it is something we would want to do. I think we will be much like our successful competitors, like Pearson, who buy businesses that make sense, that add value, that they can absorb easily and don’t create or introduce significant risk.”

Portwood became chief executive in August 2009 after Henry Reece’s retirement. His previous roles include director of strategy at Pearson—where he bought and sold companies—and director of digital strategy for Penguin. A Cambridge University graduate, Portwood is also the first non-Oxonian to run OUP in its 425-year history.

In his first two years, Portwood has presided over the OUP’s most radical restructure in decades, folding its OUP UK, OUP US and Oxford Journals arms into one division, Global Academic Business. A new digital management structure has also been created, including the hiring of Pam Sutherland to the new role of chief information officer. Sutherland is responsible for all of OUP’s digital infrastructure.  

In its 2010/11 results (the first full year under Portwood), OUP achieved a record turnover and after-tax profits of £648.6m (up from £611.9m in 09/10) and £113.9m (a rise from £90.8m).

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By JULIAN RIVERS

A very valid and important point Chico. If I was a competing publisher and my competition was getting stronger [and maybe buying my target acquisitions as well], on a tax free basis -I think I would be very unhappy. Is this fair trading ?

Fri, 09/09/2011 - 16:49
By Polybius

It wouldn't make any difference to OUP to lose charitable status; because the Press is a department of the University, they could simply covenant all their profits to the University, and pay no more tax than at present. What enables them to do so well isn't that they are a charity but that they operate in the hugely profitable ELT market on such a large scale. It probably also helps that during difficult periods they aren't looking over their shoulders at asset-stripping buyout merchants. In any case, the Press makes an enormous difference to financial viability of the University, so a certain gratitude for its existence is called for.

Fri, 09/09/2011 - 20:40
By Phil B

I'm with Fabulist - you know you're getting old when the C.E.O's start to look younger.

Sun, 11/09/2011 - 00:30
By Mork

ELT is one avenue for costly but profitable international expansion. But it's the journals that pay the way... see the Guardian's article last month (http://bit.ly/pviCWT). We all have been aware of this incredible price inflation for serials and the cost to the public/libraries but there is little mentioned or said beyond the Gallic shrug and a 'what can we do?' defeatism.

Mon, 12/09/2011 - 11:09
By JULIAN RIVERS

A very valid and important point Chico. If I was a competing publisher and my competition was getting stronger [and maybe buying my target acquisitions as well], on a tax free basis -I think I would be very unhappy. Is this fair trading ?

Fri, 09/09/2011 - 16:49
By Polybius

It wouldn't make any difference to OUP to lose charitable status; because the Press is a department of the University, they could simply covenant all their profits to the University, and pay no more tax than at present. What enables them to do so well isn't that they are a charity but that they operate in the hugely profitable ELT market on such a large scale. It probably also helps that during difficult periods they aren't looking over their shoulders at asset-stripping buyout merchants. In any case, the Press makes an enormous difference to financial viability of the University, so a certain gratitude for its existence is called for.

Fri, 09/09/2011 - 20:40
By Phil B

I'm with Fabulist - you know you're getting old when the C.E.O's start to look younger.

Sun, 11/09/2011 - 00:30
By Mork

ELT is one avenue for costly but profitable international expansion. But it's the journals that pay the way... see the Guardian's article last month (http://bit.ly/pviCWT). We all have been aware of this incredible price inflation for serials and the cost to the public/libraries but there is little mentioned or said beyond the Gallic shrug and a 'what can we do?' defeatism.

Mon, 12/09/2011 - 11:09

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