M&A Deal Summary

The Reader s Digest Association Acquires Reiman Holding Company

On May 22, 2002, The Reader s Digest Association acquired publishing company Reiman Holding Company from Madison Dearborn Partners and Catalyst Investors for 760M USD

Acquisition Highlights
  • This is The Reader s Digest Association’s 3rd transaction in the Publishing sector.
  • This is The Reader s Digest Association’s 2nd largest (disclosed) transaction.
  • This is The Reader s Digest Association’s 3rd transaction in the United States.
  • This is The Reader s Digest Association’s 1st transaction in Wisconsin.

M&A Deal Summary

Date 2002-05-22
Target Reiman Holding Company
Sector Publishing
Buyer(s) The Reader s Digest Association
Sellers(s) Madison Dearborn Partners
Catalyst Investors
Deal Type Add-on Acquisition
Deal Value 760M USD

Target

Reiman Holding Company

Greendale, Wisconsin, United States
Reiman Holding Company LLC is a publisher of consumer magazines and related books, including the magazines Taste of Home and Quick Cooking, which are two of the largest cooking magazines in the U.S. based on circulation.

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Buyer(S) 1

Buyer

The Reader s Digest Association

White Plains, New York, United States

Category Company
Founded 1922
Sector Publishing
Employees4,700
Revenue 2.4B USD (2006)
DESCRIPTION

Reader's Digest creates and delivers products and content for books, magazines, recorded music collections, DVD and video, and websites. The company sells its products in more than 70 countries and its magazines reach well over 100 million readers globally.


DEAL STATS #
Overall 3 of 4
Sector (Publishing) 3 of 3
Type (Add-on Acquisition) 3 of 4
State (Wisconsin) 1 of 1
Country (United States) 3 of 4
Year (2002) 2 of 2
Size (of disclosed) 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-03-21 Reiman Publications

United States

Buy $760M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-03-31 Allrecipes

Seattle, Washington, United States

Allrecipes, Inc. is a provider of food ideas and resources, including recipes, meal ideas, meal preparation tips, nutrition analyses, shopping lists and recipe-scaling tools, culinary ware, and news. Allrecipes was founded in 1997 and is based in Seattle, Washington.

Buy $66M

Seller(S) 2

SELLER

Madison Dearborn Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1992
PE ASSETS 28.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Madison Dearborn Partners (MDP) is a large private equity firm that targets buyouts of private or publicly held companies, divestitures of larger companies, recapitalizations of family-owned or closely-held companies, acquisition-oriented financings, and financings to fund internal growth. MDP's target investment size is $100 to $600 million in buyout oriented transactions and $100 to $400 million in growth capital commitments. Areas of interest include basic industries (natural resources, chemicals, energy and power, automotive, building products, food, metals and mining, refining, paper, packaging and forest products, and general manufacturing), as well as communications, consumer products/services, financial services, and healthcare. Madison Dearborn Partners was formed in 1992 and is based in Chicago, Illinois.


DEAL STATS #
Overall 12 of 74
Sector (Publishing) 1 of 1
Type (Add-on Acquisition) 6 of 34
State (Wisconsin) 1 of 1
Country (United States) 11 of 66
Year (2002) 2 of 2
Size (of disclosed) 16 of 27
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-02-15 PayPal

San Jose, California, United States

PayPal enables any business or consumer with email to send and receive online payments securely, conveniently and cost-effectively. The Company's network builds on the existing financial infrastructure of bank accounts and credit cards to create a global payment system and delivers a product well suited for small businesses, online merchants, individuals and others underserved by traditional payment mechanisms. PayPal was founded in 1998 and is based in San Jose, California.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-01-01 US Power Generating

Stamford, Connecticut, United States

USPowerGen consists of three gas- and oil-fired electric power generating facilities with an aggregate summer net rating of 2,098 MW. The three facilities are located in New York City and are critical to the city's safety and electrical reliability.

Buy -
SELLER

Catalyst Investors

New York, New York, United States

Investor Investor Investor Investor Investor


Category Venture Capital Firm
Founded 1999
PE ASSETS 377M USD
Size Middle-Market
Type Sector Focused
DESCRIPTION

Catalyst Investors is a specialist private equity firm that targets investments in the media, communications and internet services industries. Specific areas of interest include, video and audio content and distribution, print and online publishing, out-of-home advertising, music publishing, wireless voice and data, wireless spectrum and other infrastructure, outsourced applications providers / software as a service (SAAS), subscription based services, and online advertising. Catalyst looks for the growth companies located in the US and Canada requiring $10 to $60 million in capital. Catalyst prefers businesses with 'high-margin economics', 'defensible market positions', and 'recurring revenues'. Catalyst was formed in 1999 and is based in New York.


DEAL STATS #
Overall 13 of 39
Sector (Publishing) 1 of 2
Type (Add-on Acquisition) 6 of 19
State (Wisconsin) 1 of 1
Country (United States) 13 of 37
Year (2002) 3 of 3
Size (of disclosed) 6 of 10
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-04-12 Telemundo Communications Group

Hialeah, Florida, United States

Telemundo Communications Group, Inc. is an American television network that broadcasts in Spanish. The network is the second-largest Spanish-language content producer in the world.

Sell $2.7B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-01-01 Aloha Partners

Providence, Rhode Island, United States

Aloha Partners, L.P. provides wireless broadband services in the United States. It provides mobile broadband IP service for desktops, laptops, pocket PCs, and other devices.

Buy -