Pearson to Acquire Putnam Group

Consolidation of the book publishing industry intensified Tuesday as the Pearson Group, the British media conglomerate, announced that it will acquire the Putnam Group from MCA Inc. for $336 million. The purchase will create the fourth-largest publisher in the United States, with estimated sales of $650 million, as Putnam Berkley, the publisher of Tom Clancy, Patricia Cornwell and other brand-name authors, combines with Pearson-owned Penguin Books, whose various divisions publish Stephen King, Terry McMillan and a wide assortment of literary classics.

“This is a marriage that I’ve pursued for probably a decade,” said Phyllis E. Grann, 59, the chairwoman of Putnam Berkley, who will become president of the combined companies. “The industry has consolidated in such a way that there will always be great, independent publishers, such as Workman, and then there are Random House, Simon & Schuster and Bantam Doubleday Dell. This new combination allows us to compete with these giants.”

In strategic terms, the Putnam Berkley-Penguin merger totals more than the sum of its parts. Putnam Berkley brings a lineup of authors who can be expected to continue producing bestsellers. Penguin, whose imprints include Viking, Dutton and Signet, boasts an extensive backlist of titles and a worldwide distribution network capable of expanding the market for Putnam Berkley’s books.

“Put them together and you have two companies that complement each other very well--and you have a powerhouse,” said Michael Lynton, 36, a newcomer from Disney who takes over at the end of the year as chairman and chief executive officer of Penguin Group worldwide, including the combined American companies. Lynton said from London that he intended to maintain the “editorial integrity” of the firms while achieving savings in back-end operations such as warehousing.

He expects the deal to close in about 30 days.

* Paul D. Colford writes for Newsday.