Reader's Digest Acquires Books Are Fun

Share this content:
The Reader's Digest Association, Pleasantville, NY, yesterday announced its agreement to acquire Books Are Fun, a display marketer of books and gifts, for approximately $380 million in a cash and debt transaction.


In a Webcast with Wall St. analysts, Thomas O. Ryder, the company's chairman/CEO, said the acquisition would reduce the company's reliance on sweepstakes by giving it new distribution channels. "While the direct marketing channel continues to be productive, we need to employ more distribution channels," he said.


Books Are Fun, a privately held company based in Fairfield, IA, sells discounted books through book and gifts fairs at approximately 60,000 schools, 32,000 corporations, institutions and small businesses, and about 9,000 daycare centers. The books are targeted primarily to adults; the product mix includes bestsellers, reference books, nonfiction books as well as non book-related gift items.


There are significant synergies with RDA's gift catalog, Good Catalog, which it acquired nine months ago. "I'd be real disappointed if we couldn't find some synergy there," said Ryder.


In addition to having significant immediate impact on revenues and operating cash flow and earnings per share in fiscal year 2000, Ryder mentioned the biggest area of growth for Books Are Fun going forward lies in the international marketplace.
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here