From Deseret News archives:

Reader's Digest approves its $1.6B cash purchase

Published: Thursday, Nov. 16, 2006 6:59 p.m. MST
 |  E-MAIL | PRINT | FONT + - 
NEW YORK (AP) — Reader's Digest Association Inc., an iconic publishing and direct-marketing company, has agreed to be purchased by an investor group led by Ripplewood Holdings LLC, a private equity firm, for $1.6 billion.

The deal, announced Thursday, brings to an end a 16-year run for Reader's Digest as a publicly traded company. Reader's Digest went public in 1990 but had been controlled by a charitable foundation set up by the company's founders until 2002.

Ripplewood is paying $17 in cash for each Reader's Digest share, a premium of 10 percent over the stock's closing price Wednesday.

Ripplewood already has other publishing and direct marketing businesses, including the Weekly Reader magazine distributed to schools, The World Almanac, as well as the Time Life business, a former Time Inc. property that is a direct marketer of music, books and other products. Time Inc. is a unit of Time Warner Inc.

It was not yet clear whether the deal would result in management changes at the Pleasantville, N.Y.-based company, and representatives from both Ripplewood and Reader's Digest declined to comment.

Comments

You can be the first to comment on this story.

previousnext

Latest comments

Mathis, Its's Dave Mathews dude! Who are these guys? Where do they find...

Homeland Security was the biggest waste of tax payers's money. My heart...

2A: Broncos vs. Wildcats

why dont you have some class

They didn't make finals :(

No. 22 BYU holds off pesky Lobos

If BYU would have lost this one, it would have been almost as bad as being...

No. 22 BYU holds off pesky Lobos

ohhh...what a nightmare to think about...but if I were, I would probably hold...

Happiness is an individual thing. It doesn't matter where you live. It...

GameDay in Fort Worth

I love BYU! I rise & Shout each morning! (early) But I love to watch the...

5A: Bingham rolls to title game

I remember last year after the championship game, that Alta didn't beat...

Utah will be victorious and BYU will be left to ramble on about beating a 6-6...

Advertisements
Advertisement