Reader’s Digest Association, which in addition to its magazines, books, and direct marketing businesses operates the Good Catalog, Good Finds, and Gifts.com catalogs, announced on March 22 that it had agreed to buy Greendale, WI-based publisher/cataloger
Reiman Publicationsfor $760 million from its owner, Chicago-based Madison Dearborn Partners.
Reiman operates Country Store, a $20 million-plus catalog business that mails 7 million books a year and distributes more than 60 million miniature catalogs by polybagging them with most of its magazines. The deal is expected to close in May, according to Reader’s Digest spokesperson Bill Adler. The two businesses will explore myriad synergies, Adler says. The companie’ databases have a 19% overlap, the New York-based investment banking firm Gruppo Levey—which represented Reiman and Madison Dearborn in the deal—tells Direct Newsline.
But Adler notes that Reader’s Digest has no intentions of closing down or merging any offices—that Country Store catalog will continue to operate independently rather than come under the Gifts.com wing. “The concept is to keep the companies running independently as they have been, not to blend them,” Adler says. “Our synergies will come from building bridges, not combining staffs or combining any of the properties.”