Reader's Digest Agrees to Sale

NEW YORK The Reader’s Digest Association, publisher of Reader’s Digest, Everyday With Rachael Ray and Taste of Home, has agreed to be acquired by a private equity-backed group for $2.4 billion.

Under a definitive merger agreement, Ripplewood Holdings would acquire RDA’s outstanding common shares at $17 per share and assume its debt.

Private equity-backed investors have been pursuing media companies lately; they’re said to be strong contenders for the 18 magazines being sold by Time Inc.

While it remains focused on the boomer audience, RDA has lately sought to court younger readers with the successful launch of Everyday.