May 21, 2002
Reader's Digest Completes Reiman Acquisition
The Reader's Digest Association said yesterday that it has finished its acquisition of Reiman Publications LLC. In conjunction with that, the company also said it has finalized arrangements for $950 million of loan financing to pay for the acquisition, to repurchase $100 million of Class B Voting Common Stock and to refinance other existing borrowings.
Reiman, which publishes 12 cooking, gardening country lifestyle and nostalgia magazines, is expected to contribute more than $300 million in revenue to Reader's Digest, officials said, and help it "significantly reduce the contribution of sweepstakes promotions." Reiman's database contains more than 32 million names.