Despite opposition from shareholders and reportedly some of its own senior executives, Reader’s Digest Association has railroaded its way to a $760 million (€864m; £533m) takeover of publishing group Reiman Publications.
RDA estimates that Wisconsin-based Reiman – a low-profile but highly successful publisher of twelve titles (none ad-funded) such as Country Woman and Light & Tasty – will contribute around $300m in sales and $70m in EBITDA (earnings before interest, tax, depreciation and amortization).
The acquisition is regarded by RDA chief executive Thomas O Ryder as a way to boost the company’s books and home-entertainment unit while moving away from sweepstake promotions, increasingly under fire from states’ attorneys general.
However, several shareholders expressed opposition to the deal, and some executives are believed to be concerned about the growth prospects of the publishing sector in which Reiman specializes.
Data sourced from: The Wall Street Journal Online; additional content by WARC staff