The management team will be led by Managing Director, Chris Spratling (pictured).
The broadly based business employs 100 people and is widely recognised as one of the UK's leading marketers of magazines, books, music, video, financial services and healthcare products, supported by its unrivalled prize draw offering.
The deal secures the future of the business which went into administration in February 2010 as a result of 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.
The new investment will be made from BECAP in which Better Capital Limited invested £142m following its flotation on London's AIM in December 2009. Following the transaction the new company will have no bank debt. This is the second transaction by BECAP, following the acquisition of Gardner Group in February 2010.
Commenting on today's news, Chris Spratling, Managing Director said: "We are delighted to have completed the buyout today and in doing so to have secured the future of a tremendously exciting business. We are now fully funded and debt free and can now focus on bringing our customers all the services and products that they have such huge affection for. The iconic magazine and prize draw will continue but it should be remembered that these are just a part of a much larger business. There are tremendous opportunities for our businesses in financial services, books and healthcare and significant plans to expand all aspects of the Reader's Digest business in the UK."
Mark Aldridge, CEO of Better Capital LLP, said: "It's rare to have an opportunity to back a dynamic management team to run a business with the heritage and brand strength of Reader's Digest. Management envisage no fundamental changes to the much loved offering and believe with greater investment and expansion through the internet to complement the existing magazine, they will reach a wider audience. This is a business that we see going from strength to strength and catering to the needs of a future generation of Reader's Digest customers".
