In March, we reported that Bertelsmann might be looking to sell its book clubs (including the Science Fiction Book Club), collectively known as Direct Group North America, which includes the former Bookspan and Columbia House.
Now comes word that they have indeed found a buyer: private equity firm Najafi Companies has agreed to acquire the book, DVD, and music club business from Bertelsmann. Neither company was forthcoming with details, but they say the hope to complete the transaction in the third quarter of 2008.
Najafi CEO Jahm Najafi issued a statement: “We are very excited to enter the direct-to-consumer business and to work closely with Direct Group North America’s management team to ensure the future success and growth of the company. We believe that the winning combination of great brands and dedicated employees signals an exciting new chapter in this company’s story.”
Bertelsmann CFO Thomas Rabe, who oversees the Direct Group North America, said Bertelsmann remains committed to the US market and will “redirect resources to other business opportunities.”
Najafi describtes itself as “a private investment firm based in Phoenix, Arizona. The firm makes highly-selective investments up to $1 billion in transaction value in companies with strong management teams across a variety of industries, and often in industries out of popular favor. The firm takes a long-term view on its investments and focuses its efforts to create value through growth and superior performance.”