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Ripplewood and ZelnickMedia Acquire Time Life
Time Life and Lillian Vernon Corporation Join to Form Direct Holdings Worldwide
NEW YORK, Jan. 5 /PRNewswire-FirstCall/ -- Time Inc., Ripplewood Holdings
L.L.C. and ZelnickMedia Corporation announced today the sale of Time Life Inc.,
the global music and video direct marketing subsidiary of Time Inc.
Time Life will be owned and operated by Direct Holdings Worldwide L.L.C., which
also owns the Lillian Vernon Corporation. Direct Holdings was formed in
connection with the acquisition of Lillian Vernon Corporation by Ripplewood and
ZelnickMedia in July 2003 and, with the acquisition of Time Life, is expected to
have revenues in excess of $500 million. The company will operate as a leader in
the sale of music and video products under the Time Life brand, as well as a
leader in gift, household, and children's merchandise under the Lillian Vernon
brand. ZelnickMedia will be responsible for the day-to-day management of the
company. Strauss Zelnick will be the Chairman and CEO of the new entity.
Under the terms of the transaction, which is effective immediately, Direct
Holdings has acquired an exclusive long-term license for the worldwide use of
the Time Life brand in the direct marketing of music, video, books and
educational software. Specific terms of the transaction were not disclosed.
"Ripplewood and ZelnickMedia are delighted to have concluded this agreement with
Time Inc.," said Strauss Zelnick. "We have enormous respect for Time Life and
intend to continue to build upon its history of product excellence and consumer
trust. Our strategy in acquiring Lillian Vernon Corporation this summer was to
begin to build and operate a stable of leading direct marketing brands. Time
Life is our second major acquisition of the year. We are very excited about the
opportunity to build upon the foundation of these two terrific businesses."
"Given our desire to concentrate on high-growth opportunities in Time Inc.'s
core magazine businesses and brands, selling the Time Life direct marketing
division to the right buyer made strategic sense," said Ann Moore, Chairman and
CEO of Time Inc. "We wanted to be certain, though, that the Time Life brand
would go to an organization that is highly qualified to carry on its values and
traditions. Under Ripplewood and ZelnickMedia, Time Life is well positioned to
accomplish these objectives."
Founded in 1961, Time Life is one of the world's pre-eminent creators and direct
marketers of unique book, music, video and multi-media products. The Time Life
name is one of the most recognized and trusted brands in existence today. Its
products are sold throughout North America, Europe, Australia and Asia through
television, print, retail, the Internet, telemarketing and direct sales.
Lillian Vernon Corporation is a fifty-two year-old specialty catalog and online
retailer that markets gift, household, kitchen, gardening, Christmas, and
children's products. The Company is one of the largest specialty catalog
marketers in the United States. Since the Ripplewood-ZelnickMedia acquisition
was completed in July, the company has increased its promotional presence beyond
its core catalog, including online, on television, in print, and on the radio.
Lillian Vernon and its subsidiaries publish six catalog titles: Lillian Vernon,
Lilly's Kids, Favorites, Personalized Gifts, Sales and Bargains, and Rue de
France.
Ripplewood manages approximately $4 billion of committed capital through four
institutional private equity funds, focusing primarily on investments in the
U.S. and Japan. Ripplewood is a pioneer of the "Industrial Partner" investment
philosophy, in which the firm forms partnerships with world-class operating
executives to acquire businesses in targeted industries and pursue pre-defined
strategies to enhance the value of these businesses. Time Life is Ripplewood's
second major acquisition in the direct marketing arena, both in partnership with
ZelnickMedia.
ZelnickMedia is a partnership of experienced media executives that owns
interests in, advises, and manages an array of media enterprises in direct
marketing, recorded music, entertainment content, CD manufacturing, online
games, and media-related software, both in the U.S. and Asia. ZelnickMedia has
worked closely with Ripplewood on various investment opportunities since the
firm was founded three years ago.
Time Inc. is the world's leading magazine company, publishing about 130
regular-frequency titles with 300 million readers. Time Inc. is a wholly owned
subsidiary of Time Warner Inc., the world's leading media and entertainment
company.
Contacts:
Jim Friedlich
ZelnickMedia
Direct Holdings Worldwide
1-212-223-1383 x239
Peter Costiglio
Time Inc.
1-212-522-3927
Jeffrey Taufield
Kekst & Co. (for Ripplewood Holdings)
(212) 521-4815
DATASOURCE: Time Inc.
CONTACT: Jim Friedlich of ZelnickMedia, Direct Holdings Worldwide,
+1-212-223-1383, ext. 239, ; or Peter Costiglio of Time
Inc., +1-212-522-3927, ; or Jeffrey Taufield of
Kekst & Co., for Ripplewood Holdings, +1-212-521-4815,