DeNovo Corp. acquires Dugent Publishing.
The purchase price was $7 million and the purchased assets include fixed assets, intellectual property including trademarks, and contract rights. A cash payment of $1 million was made in July when the asset purchase and sale agreement was signed and a subsequent payment of $2 million was made on Friday, Sept. 6. The remaining balance is being financed through a long-term note held by the seller.
Dugent, a 35-year old company based in Miami Springs, Fla., had approximately $7.2 million in revenue and pre-tax profits of approximately $1.8 million in 1995. DeNovo has formed a subsidiary, Firestone Publishing Inc., to manage the four magazines and the additional combined circulation of 5 million they add to DeNovo's publishing base.
This is the third publishing acquisition for DeNovo in less than six months. In May the company purchased 16 magazine titles from 15-year old Kearney Publishing for $7 million and established Princeton Publishing, another wholly owned subsidiary of DeNovo. On June 13, DeNovo acquired Lady's Circle Patchwork Quilts, a 25-year old title, for $107,000 cash. Lady's Circle Patchwork Quilts has a subscriber base of 23,000 and a total monthly print order of 100,000.
DeNovo Corp., through its wholly owned subsidiaries Princeton Publishing, and Firestone Publishing, is engaged in the publishing and distribution of 21 periodical, consumer lifestyle magazines. Editorial staff and offices are located in New York City and a wholly owned subsidiary of Princeton, Kingston Press Inc., owns and maintains a printing plant in Sussex, Wis. The plant is used for the printing of the company's magazines and to perform printing work for third parties on a contract basis. The company's executive offices are located in Palm Beach.
The company is now projecting annual gross revenues of $17.2 million with annual pre-tax earnings of $3 million. The latest acquisition together with several outside printing contracts, are part of the company's long-range goal of increasing utilization of the company's Wisconsin printing plant to nearly 100% from 50%.
CONTACT: Media contact:
Bennett & Co., Orlando, Fla.
Laura Bennett, 407/425-6040
Tony Sandelier, 407/865-9433