BNA purchases Kennedy Information for $47.7 million.

The Bureau of National Affairs Inc. has acquired the New Hampshire-based Kennedy Information, which produces newsletters and other information products, conferences, and advisory services for the recruiting, consulting and investor relations industries. The purchase price was a staggering $47.7 million, including cash and assumed liabilities.

Just five years ago the firm's founder, James H. Kennedy, sold the company--which included two newsletters, Consultants News and Executive Recruiter News, plus some directories--for about $2 million.

Kennedy's dramatic growth rate, in excess of 50 percent over the past four years, has been engineered by two brothers, Wayne Cooper (president and CEO) and Marshall Cooper (executive vice president for marketing and sales).

BNA paid more than four times gross revenues for Kennedy, perhaps the highest multiple ever paid for a newsletter information company. It was reported that Kennedy revenues were above $10 million for the last fiscal year.

Cooper brothers key factor

One knowledgeable source said the premium price paid by BNA for Kennedy was based on its strategic position in an expanding marketplace and on the fact that the Coopers and the management team will remain in place.

This was pointed out by BNA president and CEO Paul Wojcik in his announcement about the acquisition: "This is a significant strategic acquisition for BNA. Kennedy's management has a proven track record of identifying opportunities in different vertical markets and rapidly building an integrated portfolio of information products for those markets.

"Furthermore, Kennedy's reputation for creating benchmark-quality products and services matches nicely with BNA's own product philosophy. The result is another important expansion of BNA's market reach."

Kennedy publishes nine newsletters, eight directories, including The Directory of Executive Recruiters, and three magazines, including Consulting; and it produces research reports and conferences, including the rapidly growing e-Recruiting & Staffing Conference. It also provides consulting and advisory services to its target markets.

The decision of the Coopers to remain with the company after the sale was not unexpected. When Kennedy asked the brokerage firm of Jordan, Edmiston Group to look for a buyer this summer, it was understood that the existing management team and the Coopers would stay.

The Coopers said that they need financing for acquisitions and technology development in order to expand Kennedy to a $100 million company.

"We view this as a perfect marriage," said Wayne Cooper. "The transaction is a great fit for our employees and will allow Kennedy Information to continue on its path of extraordinary growth with the benefits of a larger, very talented organization. BNA is committed to helping Kennedy achieve its ambitious profitability goals through continued organic growth as well as through strategic acquisitions."

Marshall Cooper added that "the two companies share core values. Each is uncompromising in its dedication toward producing the highest quality editorial content in the world, as well as in its respect for its staff.... BNA has been ranked by Fortune magazine as one of the 100 best companies to work for in each of the last three years."

Kennedy Information is headquartered in Fitzwilliam, N.H., and employs 70 full-time staff members in its bureaus in London and Los Angeles and offices in New York and New Hampshire.

BNA, 1231 25th St., NW, Washington, DC 20037, 202-452-4200, fax [phone]. Kennedy, One Kennedy Place, Route 12 South, Fitzwilliam, NH 03447. 603-585-3101, www.kennedyinfo.com.