Adams: 'Aurelius has the firepower to support our plans'

Connect Books m.d. Justin Adams has promised it will be "business as usual" at the distributor as its acquisition by private equity company Aurelius is completed, and has said the well-funded buyer's "firepower" can support the business' future plans.

Meanwhile indie bookshops have welcomed news of the buy, and the continuity it promises for the business, which will rebrand back to Bertram Group.

Connect Books was put up for sale in October and its acquisition was announced yesterday (21st December), and is expected to complete early in the New Year. Adams told The Bookseller: "Sale processes are inherently unpredictable and to have found a good buyer in short order, without an extended period of uncertainty, is a really great result, especially such a well-funded investor with the firepower to support us in our plans.

"Aurelius has acquired the division in its entirety; Connect Books operates as a very distinct part of Connect Group, with limited overlap other than sharing IT server infrastructure, for example, and we therefore already operate very independently. Therefore it is business as usual as we transfer the management team, the business, and our strategy to a different owner."

He added: "As with any owners, as they get to know the business more closely they will form their own views and work with us to evolve and develop this strategy. There will also be nuances in how they wish to do things, which we will adapt to as we work together. In the meantime we continue to be very focused on progressing our plans irrespective of the sale process, to offer our customers the best in availability, service and efficient reliable solutions."

As a listed holding company, Aurelius has long-term investment cycles and has owned a number of its businesses for up to a decade, he said. It currently has 22 portfolio companies located across Europe which employ around 20,500 people and generate annual revenues of more than €3.5bn.

The private equity firm also has a particular expertise in supporting operational improvement. Adams said: "Like many companies in our and similar sectors we are facing inflationary costs like the national living wage, so are continuously on our toes looking for opportunities to be more efficient. As an example last year we invested well over £2m in projects such as the automation of our direct to consumer packing operations. We are excited to work with a business like Aurelius with the expertise and financial firepower to support this assuming the returns are there. 

"One of their first questions has been, 'Are there opportunities that with investment could accelerate your progress?”' There are many parallels to the support they have given Office Depot [the US office supplies vendor acquired by Aurelius in January] to their turnaround strategy."
 
Independent booksellers have reacted positively to the news. Marie Moser, owner of the Edinburgh Bookshop, said she was “very pleased”, as it means Connect Books will continue to operate. “It’s very good for the wider industry to have two major book businesses. It wouldn’t be at all healthy if Connect Books [and therefore Bertrams] folded and we only had Gardners. I’m really happy and its good news for suppliers and retailers.”

Natalia de la Ossa, manager of the London Review Bookshop, said: “One of our reps told us earlier that [the new owner] is planning on being hands off, and letting the Connect Books management get on with it. So there won’t be any immediate changes to day-to-day life which is really good.”

Andy Rossiter of Rossiter Books in Ross-on-Wye said: “I’ve been really pleased with the way they have improved their service immeasurably - Bertrams have got their act together superbly over the last three or four years - and with the initiatives they’ve been trying which have been very independent- focused. It certainly feels that they're listening to indies and giving them what they want, actually stocking a better range and more of the bestsellers. 

"I’m hoping the new ownership will just add to what they’re doing and maybe a cash injection will help them to improve. I think they’re on the right course and I just hope whatever new ownership brings that this continues, and the head management, Justin and co, all stay on to keep guiding that forward."

At the Booksellers Association, c.e.o. Tim Godfray commented: “Apart from being really impressed at the speed at which the sale of Bertrams has been concluded, The Booksellers Association is delighted to learn that the outcome of the purchase by Aurelius will be very much business as usual.  It is particularly heartening to know that Justin Adams and Marc Dubery will continue to head up the senior management team of The Bertram Group. Justin and Marc have done a great job."
 
He added: “Aurelius seem to be a good fit.  They have very considerable resources at their disposal and from their track record, show themselves to be a good, stable, long term investor”.