Reader's Digest Association Licenses its Business Operations in parts of Europe, Central Europe and the Nordic Region Licensing Deals Achieve Important Milestone in the Company's Transformational Plan
NEW YORK, April 30, 2013 /PRNewswire/ -- The Reader's Digest Association, Inc., the global multi-brand and multi-platform media and direct marketing company, today announced that it has licensed its operations in France, Belgium and the Nordic region to SAPE, and in Poland, Romania and Hungary to Tarsago Media Group. Both of these agreements required US Bankruptcy Court approval, which the Company previously received. The partnerships are effective today.
The Company's licensing initiative is one of the core pillars of its transformation plan. Last summer, the Company licensed its businesses in Spain and Portugal to SAPE. The Company continues to pursue licensing agreements for its international business in other regions.
"Today marks a big step in Reader's Digest Association's plan to transform our international business by enabling us to reduce corporate overhead to achieve a sustainable debt structure and to simplify our business," said Robert E. Guth, CEO of Reader's Digest Association. "While we still have more to do, we believe that these licensing transactions will provide the Company with steady revenue streams and enable us to maintain our global footprint without the costs associated with running these businesses. In addition, both of our licensees are excellent strategic partners for Reader's Digest and know our business well."
Both SAPE and Tarsago have extensive understanding of the Reader's Digest business. SAPE is a leader in Spain and Portugal in mail order and direct selling, and last year began a partnership with RD through the licensing of the Iberia business. Tarsago is co-owned by a former RD Central Europe executive.
Mr. Guth continued, "I would like to thank the France, Nordic, Poland, Romania and Hungary teams for their significant contributions to Reader's Digest International and for everyone's efforts in making these transactions possible. I look forward to a close working relationship and successful partnership with these teams in the future."
The Company expects all affected RDA employees will transition with the businesses to the new owners.
About The Reader's Digest Association, Inc.
Reader's Digest Association (RDA) is a global media and direct marketing company that educates, entertains and connects consumers around the world with products and services from trusted brands. For more than 90 years, flagship brand Reader's Digest, the world's largest circulation magazine, has simplified and enriched consumers' lives by discovering and expertly selecting the most interesting ideas, stories, experiences and products in health, home, family, food, finance and humor. Taste of Home is the world's largest circulation food publication and is the leading multi-platform producer of information on food, cooking and entertaining. Other brands include The Family Handyman, Birds & Blooms, Country, and many other enthusiast titles in the U.S. and internationally. The company provides content in print; online; via digital download on iPad, mobile apps, Kindle, KindleFire, Nook, Sony Reader and Zinio; books and home entertainment products; Facebook, Twitter and other social media outlets. Further information about the company can be found at www.rda.com.
For further information contact:
The Reader's Digest Association
Susan Russ: (914) 244-7832
SOURCE The Reader's Digest Association, Inc.