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Reader's Digest Association Announces Plans to Sell Allrecipes
Oct 20, 2011 (04:10 PM EDT)
NEW YORK, Oct. 20, 2011 /PRNewswire/ --The Reader's Digest Association, Inc., today announced that its Board of Directors has initiated a process to explore a possible sale of Allrecipes in order to accelerate its focus on its master brand strategy.
"The exploration of a sale of Allrecipes demonstrates our commitment to enhancing shareholder value and sharpening our strategic and financial focus on our core master brands, such as Reader's Digest, Taste of Home and The Family Handyman," said Robert E. Guth, President and Chief Executive Officer. "Allrecipes is a terrific business with an exceptional team, and impressive user growth over the last five years. We believe there will be strong interest in this category-leading asset."
"Allrecipes has thrived over the last six years under the RDA umbrella," said Lisa Sharples, President, Allrecipes. "We are excited about building on our significant success in expanding our user community to date and look forward to growing the Allrecipes brand with a new partner."
Allrecipes is the world's largest digital food brand, with over 24 million monthly unique users globally, nine million downloads of mobile apps, the number one how-to recipe channel on YouTube, and receives 700 million annual visits from home cooks who discover and share food experiences through recipes, reviews, photos, profiles, and blog posts. For 14 years, the Seattle-based site has served as a dynamic, indispensable resource for cooks of all skill levels seeking everyday and special occasion meal solutions, plus practical cooking information.
In making the announcement, RDA stated that there can be no assurance that this strategic review process will result in a sale. Morgan Stanley and Evercore Partners are acting as financial advisors to assist the Company with the strategic review process.
About The Reader's Digest Association, Inc.
RDA is a global media and direct marketing company that educates, entertains and connects more than 140 million consumers around the world with products and services from trusted brands. With offices in 44 countries, the Company reaches customers in 79 countries, publishes 90 magazines, including 50 editions of Reader's Digest, the world's largest-circulation magazine, operates 83 branded websites and sells nearly 40 million books, music and video products across the world each year. Further information about the Company can be found at www.rda.com.
Certain information contained in this press release may contain "forward-looking statements" that relate to future events. These statements often address our expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek" or "will." Forward-looking statements by their nature address matters that are uncertain and include, but are not limited to, statements regarding our expectations of the performance of our lines of business, the impact and/or future success of our strategic initiatives, including our digital transformation, cost savings, future operating results, liquidity, prospects and growth. Although we believe that the expectations reflected in these statements are based upon reasonable assumptions and estimates, we cannot give assurance that the expected results will be achieved. We refer you to our Risk Factors included in our Registration Statement on Form S-4 and the related prospectus, as declared effective on February 11, 2011 and in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2011 and June 30, 2011, filed with the Securities and Exchange Commission, for factors that could impact the Company. We assume no obligation to update or supplement any forward-looking statements except as otherwise required by law.
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SOURCE The Reader's Digest Association, Inc.