NEW YORK and PLEASANTVILLE, N.Y., Aug. 7 /PRNewswire/ -- Time Inc. and
The Reader's Digest Association, Inc., today announced that they have
entered into a definitive agreement for Time Inc. to acquire QSP, Inc.,
RDA's school and youth groups fundraising company. The purchase price will
be $110 million cash. The companies expect to close the transaction shortly
after receipt of regulatory approvals and the satisfaction of customary
closing conditions. The announcement was made jointly by Ann S. Moore,
Chairman and Chief Executive Officer of Time Inc., and Mary Berner,
President and Chief Executive Officer of RDA.
"We are delighted to be acquiring QSP, by far and away the leader in
providing fundraising services to schools and youth organizations in North
America that need fundraising assistance," Moore said. "QSP will be an
excellent fit with Time Inc."
Berner said: "We are very pleased to announce this agreement, and we
look forward to working with Time Inc. on a seamless transition for QSP's
employees, customers and partners. We view this transaction as a highly
positive outcome for all parties concerned. For RDA, the move is consistent
with our strategy to focus on our core competencies, which include growing
our portfolio of publishing businesses and building multi-platform
communities of customers based on our branded content."
Time Inc. sees fundraising as a growing area for subscriptions across
the magazine publishing industry and envisions benefits to operating QSP's
large direct-selling force in North America. "Time Inc.'s strong expertise
in consumer marketing will allow us to enhance QSP's ability to serve the
publishing industry and schools in need of fundraising assistance," said
Brian Wolfe, Senior Vice President, Consumer Marketing of Time Inc. "We
look forward to working with QSP's Management Team and staff after the sale
is completed."
Kerry Hatch, President of RDA's School & Educational Services division,
and QSP, Inc., said: "We are very excited to become a part of Time Inc.
Working within Time Inc.'s strong consumer marketing framework, we will
have the opportunity to apply our fundraising expertise on a larger scale
as we bolster QSP's magazine and multi-product sales across our broad
spectrum of customers."
For QSP, moving to Time Inc. is a reunion. RDA and Time Inc. jointly
ran QSP after it was founded in 1963. RDA bought Time Inc.'s share in 1971.
QSP went on to become the largest fundraising company in North America
helping schools, scouting groups and other organizations supplement their
fundraising needs while supporting learning and team-building. Over the
years, QSP has helped students and youth groups raise more than $3 billion
to support their schools and non-profit organizations.
About The Reader's Digest Association, Inc.
The Reader's Digest Association, Inc., is a global multi-brand media
and marketing company that educates, entertains and connects audiences
around the world. With offices in 45 countries, it markets books,
magazines, music and video products that reach a customer base of 100
million households in 79 countries. It publishes 92 magazines, including 50
editions of Reader's Digest, the world's largest-circulation magazine,
operates 65 branded websites generating 18 million unique visitors per
month, and sells approximately 68 million books, music and video products
across the world each year. Its global headquarters are in Pleasantville,
N.Y.
About Time Inc.
Time Inc., a Time Warner company, is one of the largest content
companies in the world. With 24 magazines and 26 websites in the United
States, it is the country's largest publisher. Each month, one out of every
two American adults reads a Time Inc. magazine, and one out of every seven
who are online visits a company website (more than 25 million monthly
unique visitors). Time Inc.'s popular brands and successful franchises
extend to online, television, cable VOD, satellite radio, mobile devices,
events and branded products.
Forward-looking Statements
Certain matters discussed in this news release and oral statements made
from time to time by representatives of RDA and Time Inc. (including, but
not limited to, statements regarding the consummation of the transaction
discussed in this release; statements regarding the expectations of
operating plans and strategies generally; statements regarding expectations
of the performance of the fundraising businesses and other lines of
business; and future operating results) may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995 and the Federal securities laws. Although the companies believe
that the expectations reflected in such forward-looking statements are
based upon reasonable assumptions, they can give no assurance that their
expectations will be achieved. Forward-looking information is subject to
certain risks, trends and uncertainties that could cause actual results to
differ materially from those projected. Many of these factors are beyond
the companies' ability to control or predict. Important factors that may
cause actual results to differ materially and that could impact the
companies and the statements contained in RDA's or Time Warner's (parent
company of Time Inc.) public filings. For forward-looking statements in
this news release, the companies claim the protection of the safe harbor
for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. The companies assume no obligation to update
or supplement any forward-looking statements whether as a result of new
information, future events or otherwise.
SOURCE The Reader's Digest Association, Inc.; Time Inc.
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Related links:
http://www.rd.com
CONTACT:
Dawn Bridges, +1-212-522-2494,
dawn_bridges@timeinc.com, or Jane Lehman, +1-212-522-0597
jane_lehman@timeinc.com, both for Time Inc.; William Adler,
+1-914-244-7585 william_adler@rd.com, for The Reader's Digest
Association, Inc.
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