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F&W Publications agrees to acquire Krause Publications.

F&W Publications (Cincinnati, OH), a special interest book and magazine company that was purchased earlier this year by Providence Equity Partners (Providence, RI/London) in a partnership with former Primedia chairman William Reilly and company management, has acquired employee- owned Krause Publications, Inc. (Iola, WI) for $120 million, including $39 million of debt. The sale is expected to close by the end of July.

A summary of the purchase says F&W will pay $241 per share of company stock, a 38% premium over Krause's last valuation. Krause president Chet Krause, who set up an employee stock ownership plan 14 years ago in an attempt to keep ownership local, said the ultimate per-share price would be significantly higher, although it was not clear if a higher per-share price would increase the purchase price.

Established in 1952, Krause produces 46 periodicals, 15 hobby shows and 750 reference and how-to books for the antiques, arts & crafts, construction, comics, firearms, old car, outdoor, sports, stamps and toy sectors. Most of the periodicals are consumer magazines. Trade titles produced by Krause include Frame Building News, Metal Roofing, Blade Trade for the cutlery industry, and Comics & Games Retailer. After completion of the purchase, F&W said it expects the combined companies to generate annual revenues of approximately $200 million.

F&W is also a publisher of special interest magazines and books, mostly for the consumer market. Magazine titles include ID Magazine, for the graphic arts market, Family Tree, Writer's Digest and Popular Woodworking Both Reilly, who has been appointed chairman of F&W, and F&W ceo Stephen Kent said their company will be making additional acquisitions. Reilly told the New York Post's Keith Kelly that he plans to make F&W a $500 million company, while Kent said the deal "is a natural fit for both companies and will allow F&W to continue to grow the business both organically and through further acquisitions."
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Comment:F&W Publications agrees to acquire Krause Publications.
Publication:Business Publisher
Article Type:Brief Article
Geographic Code:1USA
Date:Jun 30, 2002
Previous Article:Business Publisher Stock Quotes.
Next Article:Hughes Communications ceases operations, four titles closed.

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