Houghton Mifflin Harcourt HMHC, -0.17% said it’s agreed to sell its HMH Books & Media consumer publishing division to News Corp. NWS, -1.68% NWSA, -1.85% for $349 million in cash. Houghton Mifflin said the deal to sell the publisher of the J.R.R. Tolkien titles will let it focus on the K-12 education market and pay down a significant portion of its debt. HMH adjusted its 2021 outlook to take account of the transaction, now expecting billings between $905 million and $955 million on a cash flow margins between 9% and 11%. The unit will join News Corp.’s HarperCollins trade publishing division. In calendar year 2020, HMH Books & Media had net sales of $191.7 million, and Adjusted EBITDA of $26.6 million. News Corp. also owns MarketWatch, the publisher of this report.
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