UPDATE: Peerless Media Closes RBI Deal, New Buyer Emerges for Engineering Titles
Seven of the 23 shuttered titles have now been acquired.
Peerless Media today completed its acquisition of the four titles in the Supply Chain Group from Reed Business Information. Backing for the deal has come from EH Publishing, a Framingham, Massachusetts-based home technology publisher.
The titles—Logistics Management, Modern Materials Handling, Supply Chain Management Review and Material Handling Product News—were among the 23 scheduled to be shut down by RBI. Peerless, a company formed by the former management of the Supply Chain Group, announced last week it had entered into an agreement in principle to purchase the brands.
EH Publishing provided “most of the financial resources,” to complete the deal, EH Publishing CEO Kenneth Moyes tells FOLIO:. “Basically, [Peerless] is an entity that EH is a majority owner in,” he said, declining to provide further detail on his company’s stake.
EH operates in five markets—consumer electronics, house of worship, live sound, robotics, and IT—and Moyes says there is “peripheral” overlap in some areas with the Peerless titles.
EH will also provide the back office infrastructure for Peerless. The group is in the process of locating new office space and will be located close or commingled with the EH offices in Framingham, says Moyes.
UPDATE: Another management-led buyout has just been announced. Newly-formed CFE Media LLC, helmed by former Reed Business Group publishers Jim Langhenry and Steven Rourke, has acquired three titles from RBI: Control Engineering, Consulting-Specifying Engineer and Plant Engineering.
With this second 11th-hour deal, RBI’s 23 shuttered titles are effectively knocked down to 16.
Terms of the deal were not disclosed, and when contacted Langhenry and Rourke declined to offer specifics.
The pair had been working on the deal for "several months," and financial backing was assembled by Langhenry, Rourke and "a number of other private backers," says Langhenry.
After skipping May, the titles will be back with June/July issues. "You can imagine what the transition from a company the size of RBI to a small startup is like," says Langhenry. "What we are going to do between now and June is build that infrastructure and build the company in a way that delivers high-value content and deliver it in a way that people want to consume it."
Langhenry and Rourke said "several" of the existing staff will be offered an opportunity to continue with the new company. The full staff will not be moved over because, says Rourke, they didn’t want to duplicate the structure that was under RBI.
UPDATE2: RBI has confirmed that Dan Hogan, former publisher of HOTELS, has acquired that title as well as Foodservice Equipment and Supplies. No other details about the deal were immediately available.