Latest News
Jim Pattison Group Agrees to Sell US Magazine Distribution Related Assets to American News
Wednesday 05 December 2018

5 December 2018 - Canadian holding company The Jim Pattison Group has reached an agreement to sell its United States magazine distribution business, including their interest in The News Group LP, to American News Company, LLC, the company said.

The sale is expected to close by December 31, 2018 at which time executive management, and the approximately 1,500 employees of the acquired businesses, will transition to ANC and continue to oversee the day-to-day operations.

This agreement to sell JPG's US magazine business includes its distribution centers, depots, vehicles, systems, retailer contracts, publisher contracts, management personnel and related employees.

Additionally, ANC will also acquire JPG's ownership stake and all related assets of Retail Support Services, Magazine Information Network (MagNet), Comag Marketing Group and Genera Solutions.

ANC will enter into a long-term merchandising services agreement with TNG Merchandising (which is not part of the acquisition and remains owned by JPG) to ensure that magazines continue to be properly merchandised at retail.

TNG Canada's operations (wholesale and RS2 Canada) are also excluded from this transaction and will continue to be owned by JPG and run in the ordinary course.

American News Company is a Chatham Asset Management (Chatham) portfolio company. Chatham is a USD 4bn hedge fund and a longtime supporter of the media industry.

Headquartered in Vancouver, BC, Canada, The Jim Pattison Group is a diversified group of operating businesses primarily in the United States and Canada .

JPG's operating divisions span the automotive, advertising, media, agricultural equipment, food and beverage, entertainment, exporting, financial, real estate and periodical distribution industries. JPG has grown to be Canada's 2nd largest privately held company with over USD 10.1bn in annual sales and more than 45,000 employees world-wide.

American News Company, LLC will, upon closing the announced acquisition, be a leading magazine wholesaler in the United States for publishers and retailers.

ANC, through its subsidiary Comag Marketing Group LLC, will be a provider of national distribution services, including billing and collection and sales and marketing services, for publishers.

MagNet and Retail Support Services, both subsidiaries of ANC, will offer licensing of magazine sales information and retail display services, respectively, to publishers and retailers.
Details
Date Published: 05/12/2018
Target: United States,  magazine distribution business, including their interest in The News Group LP
Country: USA
Sector: Media
Type: Divestment
Financing:
Status: Agreed
Vendor: The Jim Pattison Group
Buyer: American News Company
Comment:
Terms of the deal were not disclosed

Options