Hearst has bought Rodale Inc., the publisher of some of the largest, most established health and wellness lifestyle brands—including Men’s Health, Women’s Health and Runner’s World—and a book publishing arm. (Adweek)
The purchase price was not disclosed, but one source said it was roughly $225 million. The big question now is how many of Rodale’s 450 employees will be retained. At the moment, it appears all the existing Rodale brands—even the digital Rodale’s Organic Life—are going to be retained.(New York Post)
Insiders said the New York-based Hearst absorbed Rodale’s hefty, unfunded pension liability, which is in excess of $30 million in debt, a string of bad real estate deals and vendor contracts with various partners such as Quad, CDS, Cognizant and Axiom, as well as the liens and liabilities against Rodale out in Emmaus, Pa. So, in the end, the deal may have closed at around $100 million or less. (WWD)
Rodale, a family-owned company that also publishes the magazines Bicycling, Prevention and Women’s Health, said in June it was exploring “opportunities for potential buyers.” Hearst and Meredith Corporation, which publishes Family Circle and Better Homes & Gardens, were both circling Rodale, and industry executives expected one would prevail. (NYT)