Primedia Sells Bacon's Information to Observer AB.Primedia, Inc. (New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of ) has entered into a definitive agrement to sell its Bacon's Information (Chicago, IL) unit to Oberver AB (Stockholm, Swe.), a Swedish media and market analysis company, for $90 million. Primedia said the sale represents an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become multiple of approximately nine times. A filing for standard U.S. regulatory approval has been made by Primedia. Primedia, then K-III Communications, acquired the privately-held Bacon's Information in 1995 for about $50 million. The company said it has realized cumulative cash operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before from Bacon's "well in excess" of $50 million since its purchase, will realize a gain on the sale of approximately $54 million and will owe "minimal taxes" as a result of the sale. Bacons's Information provides media information services See Information Systems. for the public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most industry. The company produces a variety of media directories and products, including Newspaper/Magazine Directory, Radio/TV/Cable Directory, Media Calendar Directory, Business Media Directory and International Media Directory. It also operates a clipping service, a press release distribution service and a media contact lists service. Primedia ceo/chairman Tom Rogers said "we have stated that we have a program to divest non-core assets and use the proceeds to improve our balance sheet. The sale of Bacon's enables us to do that. To complete this divestiture, under these market conditions, is a clear indication of the significant value of assets in our portfolio to strategic buyers." The deal provides Observer with its first U.S. base of operations Noun 1. base of operations - installation from which a military force initiates operations; "the attack wiped out our forward bases" base air base, air station - a base for military aircraft army base - a large base of operations for an army . Earlier this year, Observer acquired News Extracts (Dublin, Ire.), Ireland's leading media and news monitoring firm. |
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