Property: Primedia Inc.
Buyer: TPG Capital
Date: May 2011
Price: $525 Million
In the spring of 2011 Primedia Inc. announced that it entered an agreement to be acquired by affiliates of private equity firm TPG Capital for approximately $525 million, or $7.10 per share.Â
Stockholders holding approximately 58 percent of outstanding Primedia stock had given written consent approving the transaction.
â€śPrimedia is a leading resource for consumers in search of housing,â€ť said David Trujillo, TPG Principal, in a statement. â€śWe believe the company will benefit from the continuing secular transition from print to digital media and we look forward to building upon the companyâ€™s innovative products and services for consumer searching for the ideal place to live.â€ť
TPG has investments in companies such as Sabre/Travelocity/Lastminute and Univision.Â
Primedia Inc. was the last entity of the former publishing giant to keep the Primedia brand. In 2005, Wasserstein & Co. bought Primedia Business (which had changed its name to Prism Business Media) for $385 million (eventually folding it into Penton Media) while magazine distributor Source Interlink bought Primedia Enthusiast in 2007 for $1.2 billion.
That deal for the enthusiast titles was essentially the last divestment of Primedia, which finally paid down the its debt load of $1.3 billion and capped a massive dismantling of the company. It also raised eyebrows when a major magazine distributor (Source) became the owner of a huge stable of enthusiast titles.
The sale represents the last vestige of a once massive consumer and b-to-b publisher.