John Wiley to Buy Hungry Minds

First Edgar Allan Poe, now “Pit Bulls for Dummies.”

John Wiley & Sons Inc., the original publisher of novels by Poe, Herman Melville and James Fenimore Cooper, is buying the financially troubled publisher of the “for Dummies” series for $90 million.

New York-based John Wiley is offering shareholders of Hungry Minds Inc. $6.09 a share--a discount of more than 11% on the company’s closing share price Friday--and will assume $92.5 million in Hungry Minds’ debt, the two companies said Monday.

Hungry Minds shares fell 85 cents, or 12.3%, to close at $6.05 Monday on Nasdaq. John Wiley’s Class B shares rose $1.20 to close at $21.75 on the New York Stock Exchange.

The “Dummies” series was started 11 years ago with computer and software guides for everyday users. The bright yellow and black books now include titles ranging from “Italian Cooking for Dummies” to “Weight Training for Dummies” and “Sex for Dummies.”

But Hungry Minds, also based in New York, was hit hard by a drop in sales of its technology books and online products. The company closed its San Francisco and Chicago offices this year and announced a restructuring that reduced its work force from 700 to 500.

Hungry Minds put itself up for sale in March as part of an agreement to pay debts, and faced a Wednesday deadline reached with creditors.

John Wiley was founded in 1807, and became prominent by publishing books by some of the country’s 19th century literary greats, as well as works by European writers Hans Christian Andersen, Victor Hugo and Charles Dickens.

The company shifted its focus in the 1860s, turning to science and technology works in high demand during the Industrial Revolution. John Wiley hasn’t published fiction for more than a century, and 40% of its sales today are scientific, technical and medical works, including journals and reference publications.

Two years ago, John Wiley bought college textbook titles from Britain’s Pearson PLC for $58 million. It later purchased San Francisco-based business publisher Jossey-Bass from Pearson for $82 million. John Wiley has about 2,700 workers.

Hungry Minds specializes in how-to books, but also publishes CliffsNotes, Frommer’s travel guides, Webster’s New World Dictionary and Betty Crocker cookbooks.

William Pesce, John Wiley’s president and chief executive, said the purchase should be completed in mid-September, pending regulatory approval.

John Kilcullen, chairman and chief executive of Hungry Minds, didn’t address the company’s financial problems, but said John Wiley is “an ideal home for our brands, customers, employees and all business partners.”

Susan Spilka, a John Wiley spokeswoman, did not know whether the purchase would result in job cuts, or what role Hungry Minds management would have.