Maxwell Communication Corporation

Maxwell Communication Corporation was a major British media and publishing business that developed from the British Printing Corporation, a company created in 1964 through the merger of Hazell Sun and Purnell & Sons. Purnell & Sons also owned the book publisher Macdonald, giving the newly formed group an early connection to both commercial printing and publishing. During the 1960s, the company expanded its magazine interests through a merger with Haymarket Group, while its printing operations remained an important part of the business. The group experienced substantial industrial and organizational turbulence during the 1970s. Relations with trade unions became a recurring issue, and a dispute in 1978 contributed to the non-publication of The Times and The Sunday Times for approximately ten months. The episode illustrated the operational and labor-relations risks associated with running a large British printing and newspaper infrastructure at the time. Robert Maxwell took control through an aggressive acquisition campaign. In July 1981 he launched a dawn raid that gave him a 29 percent stake in the company. He obtained full control the following year and began reshaping the group around a broader communications and media strategy. The company was renamed British Printing & Communications Corporation in March 1982 and adopted the name Maxwell Communication Corporation in October 1987. These changes reflected the movement away from a narrowly defined printing identity toward a diversified international media and information business. The most significant expansion came in the United States. In 1988 Maxwell Communication Corporation acquired Macmillan Inc., a large publisher with substantial educational, professional, and trade publishing interests. The group also acquired Science Research Associates and the Official Airline Guide later that year. These transactions increased its exposure to educational information, reference products, and specialized business data. Science Research Associates was subsequently placed in a joint venture involving Macmillan and McGraw Hill, and that business was sold in 1989. The corporation's growth was closely tied to Robert Maxwell's personal control and the financing structure of the wider Maxwell group. Following his death in 1991, the company entered administration. Its assets and operating businesses were subsequently divided among other media and information companies. Time Warner, then the parent of Little, Brown and Company, acquired Macdonald; McGraw Hill acquired the portion of the Macmillan/McGraw Hill business that it did not already own; Reed Elsevier acquired the Official Airline Guide; and Macmillan was ultimately folded into Simon & Schuster. The collapse also generated extensive legal and regulatory consequences. In 1999, British courts found that Coopers & Lybrand had committed gross errors in auditing Maxwell group companies and imposed a record fine of £3.3 million at the time. Maxwell Communication Corporation is therefore remembered both for its rapid transformation into an international publishing conglomerate and for the corporate failure that followed the death of its dominant owner.

Maxwell Communication Corporation originated in 1964 as the British Printing Corporation, formed by the merger of Hazell Sun and Purnell & Sons. Purnell & Sons also owned Macdonald, giving the new organization a publishing component alongside its printing operations. In 1967, the company's magazine interests were merged into Haymarket Group. The business operated in a period when British newspapers and magazines depended heavily on large-scale printing infrastructure, and its industrial relations became increasingly difficult during the 1970s. A major dispute in 1978 contributed to The Times and The Sunday Times not being published for ten months. Robert Maxwell transformed the company after acquiring a 29 percent interest through a dawn raid in July 1981. He gained full control in 1982 and changed the name to British Printing & Communications Corporation in March of that year. In October 1987, the company became Maxwell Communication Corporation, a name intended to reflect its increasingly broad communications and publishing activities. The group pursued an ambitious international acquisition strategy. Its most important transaction was the 1988 purchase of Macmillan Inc. in the United States. Maxwell Communication Corporation also acquired Science Research Associates and the Official Airline Guide during 1988. These businesses gave the group exposure to educational publishing, professional information, reference content, and airline data. Science Research Associates was sold in 1989 to a joint venture involving Macmillan and McGraw Hill. The corporation's expansion was dependent on the wider Maxwell group and remained strongly associated with Robert Maxwell's personal leadership. His death in 1991 was followed by the company's entry into administration. The resulting breakup transferred its assets to several other media and information companies. Time Warner, then the parent company of Little, Brown and Company, acquired Macdonald. McGraw Hill acquired the part of the Macmillan/McGraw Hill operation that it did not already own, Reed Elsevier acquired the Official Airline Guide, and Macmillan was later incorporated into Simon & Schuster. The collapse produced significant legal consequences beyond the disposition of the operating assets. In 1999, British courts concluded that Coopers & Lybrand had made gross errors while auditing companies in the Maxwell group and imposed a £3.3 million fine. The corporation's history is consequently associated with two contrasting developments: the rapid creation of a multinational publishing and information portfolio, and the vulnerability of a highly leveraged, owner-dominated conglomerate after the loss of its central controlling figure.

1. 1999Audit ruling against Coopers & Lybrand

   A British court found gross audit errors involving Maxwell group companies and imposed a £3.3 million fine.

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2. 1991Administration and breakup

   The company entered administration following Robert Maxwell's death, and its assets were sold to multiple buyers.

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3. 1988Macmillan Inc. acquired

   The acquisition significantly enlarged the company's United States publishing presence.

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4. 1988SRA and Official Airline Guide acquired

   The group expanded into educational and specialized travel information.

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5. 1987Renamed Maxwell Communication Corporation

   The group adopted the name by which it became internationally known.

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6. 1982Renamed British Printing & Communications Corporation

   After securing full control, Robert Maxwell renamed the company.

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7. 1981Robert Maxwell acquires a 29 percent stake

   Maxwell's dawn raid established his controlling position in the company.

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8. 1978Printing dispute disrupts national newspapers

   A labor dispute contributed to The Times and The Sunday Times remaining unpublished for approximately ten months.

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9. 1967Magazine interests merged into Haymarket Group

   The company's magazines were combined with Haymarket Group.

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10. 1964British Printing Corporation formed

    Hazell Sun merged with Purnell & Sons to create the British Printing Corporation.

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A vertically and internationally diversified media, publishing, printing, and information group. Under Robert Maxwell, the company positioned itself as a broad communications conglomerate rather than solely as a British printer.

• Macmillan publishingBook publishing1988

  Macmillan was the group's principal international publishing asset after the 1988 acquisition of Macmillan Inc. It gave Maxwell Communication Corporation a substantial position in United States publishing and broadened the group beyond British printing and newspaper-related activities.

• MacdonaldBook publishing

  Macdonald was a book publisher associated with Purnell & Sons before the creation of the British Printing Corporation. Following the Maxwell group's collapse, it was acquired by Time Warner, then the parent of Little, Brown and Company.

• Science Research AssociatesEducational publishing1988

  Science Research Associates was an educational publishing and instructional-materials business acquired by Maxwell Communication Corporation in 1988. It was subsequently sold in 1989 to a joint venture involving Macmillan and McGraw Hill.

• Official Airline GuideTravel information1988

  The Official Airline Guide was a specialized airline and travel information service acquired by the Maxwell group in 1988. It was later sold to Reed Elsevier after the corporation entered administration.

• Commercial printing and magazine operationsPrinting and magazines1964

  The company's original activities centered on commercial printing and magazine publishing. These operations formed the industrial base from which the wider communications and publishing conglomerate developed.

• 1988Acquire Macmillan Inc.M&A

  Maxwell Communication Corporation pursued international growth through acquisitions.

  What changed. The group acquired the large United States publisher Macmillan Inc.

  Aftermath. The transaction expanded the group's international publishing portfolio, although the business was later transferred during the post-1991 breakup.

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• 1988Acquire Science Research Associates and Official Airline GuideM&A

  The corporation was broadening into educational and specialized information businesses.

  What changed. It acquired Science Research Associates and the Official Airline Guide.

  Aftermath. Science Research Associates was sold in 1989, while the Official Airline Guide was later acquired by Reed Elsevier.

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• 1987Adopt the Maxwell Communication Corporation nameStrategy

  The group's operations had expanded beyond its original printing identity.

  What changed. The company changed its name to Maxwell Communication Corporation.

  Aftermath. The new name accompanied the group's development as an international media and information conglomerate.

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• 1982Rename the company after Robert Maxwell takes controlStrategy

  Robert Maxwell obtained full control after acquiring a major stake in 1981.

  What changed. The British Printing Corporation was renamed British Printing & Communications Corporation.

  Aftermath. The renaming marked the beginning of a broader communications-oriented identity.

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• 1999Audit failures involving Maxwell group companiesControversy

  British courts found that Coopers & Lybrand had made gross errors in auditing companies in the Maxwell group and imposed a £3.3 million fine.

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• 1991Maxwell Communication Corporation enters administration

  The corporation entered administration after the death of Robert Maxwell, leading to the sale and breakup of its principal businesses.

  BankruptcyLeadership change
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• 1988Macmillan Inc. acquisition expands the group in the United States

  Maxwell Communication Corporation acquired Macmillan Inc., materially expanding its international publishing operations.

  M&A
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• 1988Science Research Associates and Official Airline Guide acquired

  The company added Science Research Associates and the Official Airline Guide, extending its portfolio into educational and specialized information services.

  M&A
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• 1987The company adopts the Maxwell Communication Corporation name

  The business changed its name from British Printing & Communications Corporation to Maxwell Communication Corporation as its activities broadened beyond printing.

  Other
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• 1981Robert Maxwell acquires a major stake in British Printing Corporation

  Robert Maxwell launched a dawn raid and acquired a 29 percent stake in the company, beginning the takeover that led to his full control.

  M&ALeadership change
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1. Maxwell Communication Corporation