Better Capital acquires Reader's Digest UK for £13m

Francinia Protti-Alvarez
12 April 2010

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Better Capital has completed a second acquisition; the management buyout of the UK business of Reader's Digest in a transaction valued at £13m, which secures the future of the business.

The company had gone into administration in February 2010 owed to significant UK pension liabilities. Reader's Digest Association Inc has agreed to allow the UK operations to publish under the Reader's Digest brand through a licence agreement. Following the transaction, the new company will have no bank debt.

The broad-based business employs 100 people and is one of the UK's major marketers of magazines, books, music, video, financial services and healthcare products. The management team will be led by managing director Chris Spratling.

This is the second transaction by BECAP, following the acquisition of Gardner Group in February 2010. The new investment will be made from BECAP Fund LP, in which Better Capital Limited invested £142m following its flotation on London's AIM in December 2009