Catalyst acquires RBI Australia
Catalyst Investment Managers has acquired Reed Business Information Australia (RBIA) from parent company Reed Elsevier. RBIA, a local unit of the B2B publisher's Reed Business Information (RBI) division, owns titles including Money Management, Australian Doctor and Pharmacy News, and online directories such as hotfrog.com.au.
RBI said in a statement that the sale reflects the company's increasing focus on paid content models and data services. The details of the transaction were not disclosed. According to Bloomberg, RBIA has an annual revenue of around A$60 million ($63.5 million).
Reed called off an attempt to sell RBI in 2008 due to deteriorating economic conditions and since then the company has divested 150 titles, including entertainment trade magazine Variety to Internet entrepreneur Jay Penske in October.
RBI had sales of GBP347 million ($560 million) in the first half of 2012, accounting for 11% of the parent company's revenue. The divestment of magazines and a reduction in costs helped the division reach a record operating profit margin of 18% in that period.
"There are significant growth opportunities available to [RBIA]," Trent Peterson, managing director of Catalyst, said in statement published on B&T, an RBIA-owned marketing industry news website. "The company will continue to innovate and proactively manage the transition to a multi channel environment."
The current management team will stay in place. The board will feature key RBIA management, two senior Catalyst staff and independents.
Reed's stock climbed 1.3% to GBP6.49 at the close of trading in London yesterday.
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