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Booktopia sells stake in Welbeck ANZ

Online bookseller Booktopia has sold its share in Welbeck Publishing Australia New Zealand (Welbeck ANZ) for $1.5 million.

Booktopia, which invested $3 million for a 25% stake in Welbeck ANZ in July 2021, sold its share to Welbeck Publishing Group, its UK-based partner in the original deal.

When the launch of Welbeck ANZ was first announced, Booktopia reported the publisher’s existing catalogue of more than 4500 titles and its approximately 250 new titles each year would be distributed in the ANZ market by Booktopia’s distribution arm Booktopia Publisher Services (BPS). However, BPS later decided not to take on the distribution services for Welbeck ANZ, and the distribution agreement has been dissolved as part of the transaction. Welbeck titles are being distributed in Australia by Allen & Unwin.

Despite the decision to sell its stake in the local operation, Booktopia said it will continue to build its relationship with Welbeck Publishing Group UK, with the proposed distribution of Booktopia-published books into the UK market.

In its 2021-22 financial report, Booktopia revealed it had taken a $2.1 million impairment on the value of its Welbeck ANZ stake following a review of the investment in Welbeck ANZ and ‘the decision not to take on the distribution services for Welbeck ANZ’.

Booktopia’s sale of its share in Welbeck ANZ was announced on Friday, 2 December, prior to the announcement that Hachette UK has acquired Welbeck Publishing Group.

Following Hachette UK’s acquisition of Welbeck, Hachette ANZ confirmed Welbeck ANZ’s current trading arrangements would remain in place until further notice, with the list represented locally by Allen & Unwin and distributed by UBD in Australia and New Zealand.

‘We’ve been very impressed by the strong publishing from Welbeck UK and ANZ and look forward to working with [managing director] Benny [Agius] and the Welbeck team here to build on their considerable success,’ said Hachette ANZ CEO Louise Stark.

Said Agius: ‘I am immensely proud of what Welbeck Publishing ANZ has achieved in its first year. The growth we achieved far exceeded our expectations and is a true testament of the commitment and hard work of our talented team.

‘We are delighted to be part of the Hachette family, and we’re looking forward to growing Welbeck ANZ and working closely with Louise and her amazing team.’

 

Category: Local news