Reader's Digest Acquires Books Are Fun

Share this article:
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.
Share this article:
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Multichannel Marketing

Generating Loyalty for Brands and Retailers in an Omnichannel World

Generating Loyalty for Brands and Retailers in an ...

Harnessing personas, loyalty programs, and new technologies can help marketers better connect with customers.

News Byte: Salesforce Forms Unit to Focus on Verticals

News Byte: Salesforce Forms Unit to Focus on ...

The industries business unit, led by ex-White House CIO Vivek Kundra, will serve six industry groupings.

Columbia U. Puts the "Do" in "Donation"

Columbia U. Puts the "Do" in "Donation"

Columbia University raises nearly $7 million in donations in just 24 hours with a combination of social media, live events, and gamification.