Direct Holdings U.S. Corporation Acquired by Reader's Digest Association

 

Time Life Business to Join Global Direct Marketing Powerhouse

 

The Reader's Digest Association announced on March 2, 2007 the successful completion of its historic acquisition by an investor group lead by Ripplewood Holdings. As a part of the transaction, Direct Holdings U.S. Corporation, which controls exclusive worldwide marketing rights to the Time Life brand, has been acquired by Reader's Digest.  

 

Direct Holdings U.S. Corp. was a subsidiary of Direct Holdings Worldwide LLC, the entity formed by ZelnickMedia and Ripplewood Holdings in the summer of 2003 in conjunction with the acquisition of catalog and online retailer Lillian Vernon Corporation. Long-term rights to the Time Life brand and other assets were acquired subsequently from Time Warner in late 2003. Time Life markets music, videos and books on television, online, and through other direct marketing channels. Direct Holdings pays an ongoing royalty for the use of the brand which continues to be owned by Time Warner.

 

Lillian Vernon Corporation was sold to an entity controlled by Sun Capital Corporation in May, 2006.

 

Ripplewood Holdings, the majority owner of Direct Holdings Worldwide, has exchanged its interest in Direct Holdings U.S. Corporation for shares of RDA Holding Co., the new parent of Reader's Digest. As a part of the transaction, ZelnickMedia, which has managed Direct Holdings since 2003, sold its minority interest in the company for cash.

 

"We are very pleased with the transaction and the terrific success Time Life has achieved over the past few years,” said Strauss Zelnick of ZelnickMedia.  “We are also confident that the Time Life brand will continue to thrive as part of an exciting new venture with Ripplewood and Reader's Digest."