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Prism Business Media Holdings Inc., a business-to-business publishing and trade show company based in New York, announced on November 2 that it would acquire the stock and assume the debts of Penton Media Inc., a Cleveland-based publishing and trade show company, in a deal totaling nearly $530 million.1 Penton is the parent company of New Hope Natural Media, a marketing solutions and publishing company for the natural products industry, and had recently acquired NPIcenter, a major online resource for natural products industry professionals.
“New Hope was very pleased with the recent announcement regarding the proposed merger,” said Fred Linder, president of New Hope Natural Media (B. Weaver, e-mail, Dec. 1, 2006). “The announcement came as no surprise to our staff and has been much anticipated as Penton has been in the process of exploring strategic alternatives since early July of this year. Our New Hope team is prepared and very excited to move into this next phase with Penton.”
Prism, which publishes more than 70 magazines and runs 17 trade shows, agreed to purchase Penton’s stock for $194.2 million. A large portion of Prism’s recent $530 million deal is intended for the assumption or repayment of Penton’s expected debt at closing. Penton absorbed a net loss of $8.4 million last year, and the company announced in July that it would be exploring various strategic alternatives, including the possible sale of the company. The transaction is expected to close during the first half of 2007, pending approval from Penton’s shareholders.
“While the process moves forward, New Hope continues to operate business as usual,” said Linder. “Our primary purpose remains the same-to serve our employees, vendors, and customers in the natural, organic, and healthy products industry with the high quality products that they have come to expect from us.”
Shortly before this merger was announced, Penton acquired NPIcenter in late September.2 NPIcenter’s website NPIcenter.com provides comprehensive news, editorial content, and discussion forums for professionals in the nutraceutical, dietary supplement, cosmetics, and food industries. NPIcenter also produces the electronic newsletters NPI Daily and NPIWatch.
“From an NPIcenter perspective, we feel the synergies between NPIcenter and New Hope are significant and are thrilled about a bigger platform and the ability to take our community building, e-media approaches to full potential,” said Len Monheit, president and editor of NPIcenter (J. Butterfield, e-mail, Nov. 27, 2006). “The next few years promise to be even more exciting, both for NPIcenter, but also for our viewers who will see new resources and tools come available.”
-Courtney Cavaliere
References
1. Booth J. Prism Media buys Penton in $530M deal. NewYorkBusiness.com. Available at: http://www.newyorkbusiness.com/apps/pbcs.dll/article?AID=/20061102/FREE/61102009/1040/FREE. Accessed November 16, 2006.
2. Penton’s New Hope Natural Media acquires NPIcenter [press release]. Boulder, CO: Penton Media; September 29, 2006.
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