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.
Stockholders holding approximately 58 percent of outstanding Primedia stock had given written consent approving the transaction.
“Primedia is a leading resource for consumers in search of housing,” said David Trujillo, TPG Principal, in a statement. “We believe the company will benefit from the continuing secular transition from print to digital media and we look forward to building upon the company’s innovative products and services for consumer searching for the ideal place to live.”
TPG has investments in companies such as Sabre/Travelocity/Lastminute and Univision.
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.