Primedia To Sell Bacon's to Observer AB
Posted on November 17, 2001
Primedia Inc., a targeted media company, announced that it has entered into an agreement with the international group Observer AB, to sell its Bacon's Information unit for $90 million. Primedia's stated that its sale of Bacon's is part of its plan announced at the time of the emap usa purchase in July to sell non-core assets and reduce debt.
Headquartered in Chicago, Ill., Bacon's Information is a provider of media information services and software and media monitoring and press coverage analysis for the public relations industry. Bacon's also provides press materials distribution services. Primedia acquired Bacon's Information for approximately $50 million in 1995.
Tom Rogers, Chairman and CEO of Primedia, said in a statment, "We have stated that we have a program to divest non-core assets and use the proceeds to improve our balance sheet. The sale of Bacon's enables us to do that. To complete this divestiture, under these market conditions, is a clear indication of the significant value of assets in our portfolio to strategic buyers. Additionally, in reaching this agreement with Observer, which provides a platform for them to open a US base of operations which they presently do not have, we think the sale is very positive for the employees of Bacon's.''
Robert Lundberg, President and CEO for Observer, says, "The acquisition of Bacon's represents a huge success for us. The company has been our preferred choice in the U.S. Coupled with our earlier acquisitions in Canada, we now have a position of strength in North America. Our already strong position in Europe therefore enables us to further develop our international offering and to secure Observer's role as a global leader in its industry."