Amsterdam, June 23: Anglo-Dutch publishing group Reed-Elsevier said on Monday it was to acquire Walt Disney business publishing unit Chilton Business Group for $447 million in cash from its own resources.

Completion of the deal, subject to US government clearances, was expected by the end of July.

"We expect the acquisition to be earnings accretive for Reed International and Elsevier shareholders from the outset," a joint statement for Reed International Plc and Elsevier NV said.

Chilton Business Group operates mainly from Pennsylvania and has three main divisions — trade magazines, exhibitions and business research. The company made $28 million pre-tax profit on turnover of $203 million in 1996.

Since 1992 Chilton has recorded compound annual growth in revenues and profit before tax of eight per cent and 17 per cent respectively, Reed-Elsevier said.The trade magazine unit accounted for 83 per cent of Chilton Business Group's 1996 revenues, publishing titles covering manufacturing, entertainment and automotive topics.

Chilton's US trade magazines division and the group's research services are to be merged with Cahners Publishing Company, a division of Reed Elsevier Inc to form a new operating group to be headed by Cahners' chief executive Bruce Barnet.

PEMCO, Chilton's exhibitions division which organises shows for the manufacturing, jewellery retail and consumer markets, will become part of Reed Exhibition companies.

"The acquisition provides an outstanding opportunity to bring together two leading US information companies," Reed Elsevier co chairman Nighel Stapleton said in the statement.

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