All employees to benefit from sale and will
receive payouts from their ownership stakes
Leading global investment firms KKR and H.I.G. Capital
(“H.I.G.”) today announced that an affiliate of H.I.G. will acquire
RBmedia and support its next phase of growth and development.
RBmedia is the leading audiobook publisher in the world with a
powerful digital distribution network that reaches millions of
listeners around the globe.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20230725893966/en/
RBmedia employees react to the news of
the cash payouts they will receive upon close of the transaction
(Photo: Business Wire)
“This acquisition marks a milestone achievement for RBmedia and
represents the next chapter in our ongoing business growth and
expansion,” said Tom MacIsaac, Chief Executive Officer for RBmedia.
“Over the last five years, we have been privileged to work with the
KKR team to create a leading company and to become a trusted
partner for authors, publishers, distributors and voice actors, and
we look forward to working with H.I.G. to build on that
foundation.”
Since KKR’s investment in August 2018, RBmedia has doubled the
size of its catalog – from over 31,000 to over 66,000 audiobooks –
and expanded its distribution channels. During this period, RBmedia
also experienced five years of double-digit revenue growth,
invested in diverse content and expanded into international
markets.
“Over the last five years, the RBmedia team has consistently
delivered high-quality, award-winning content for customers and
value for its authors and creators. It’s been a remarkable growth
journey with a dedicated team and a sense of partnership and
ownership that has led to great results for all of RBmedia’s
stakeholders, including all employee owners who will participate in
the positive financial outcome,” said Ted Oberwager, a Partner who
leads the gaming, entertainment, media and sports verticals within
KKR’s Americas Private Equity business, and Richard Sarnoff,
Chairman of Media at KKR. “We have every confidence that H.I.G.
will help take RBmedia to even greater heights.”
“The audiobook market is set for significant growth and
investment in the coming years,” said Aaron Tolson, Managing
Director at H.I.G. “We are thrilled to partner with RBmedia’s
world-class management team and to help them build on their success
to date as they continue to shape the digital media landscape.”
Upon closing of the transaction, all RBmedia employees will
receive a cash payout based on their tenure with the company.
Long-term employees will earn up to two times their annual
salary.
Since 2011, KKR has supported its portfolio companies in
awarding equity worth billions of dollars to over 60,000
non-management employees across more than 30 companies, and has
committed to deploying this model in all control investments across
its entire Americas Private Equity platform. KKR is also a founding
member of Ownership Works, a nonprofit organization that partners
with companies and investors to provide all employees with the
opportunity to build wealth at work.
The transaction, which is subject to customary regulatory
approvals, is expected to close by Q4 2023.
RBmedia was advised by Goldman Sachs & Co. LLC and LionTree
Advisors. Simpson Thacher & Bartlett LLP served as legal
counsel to RBmedia. Morgan Stanley & Co. LLC and RBC Capital
Markets acted as financial advisors, and Latham & Watkins LLP
provided legal advice, to H.I.G. Capital.
About RBmedia
RBmedia is the leading audiobook publisher in the world. With
more than 66,000 titles, our audiobooks continually top key
literary awards and bestseller lists. The company’s powerful
digital retail and library distribution network reaches millions of
listeners around the globe—at home, in the car, and everywhere
their mobile devices go. Our titles are available on leading audio
platforms, including Audible, Spotify, Apple, Google Play,
Audiobooks.com, Storytel, OverDrive, Hoopla, and many more. Find
out more at rbmediaglobal.com.
About KKR
KKR is a leading global investment firm that offers alternative
asset management as well as capital markets and insurance
solutions. KKR aims to generate attractive investment returns by
following a patient and disciplined investment approach, employing
world-class people and supporting growth in its portfolio companies
and communities. KKR sponsors investment funds that invest in
private equity, credit and real assets and has strategic partners
that manage hedge funds. KKR’s insurance subsidiaries offer
retirement, life and reinsurance products under the management of
Global Atlantic Financial Group. References to KKR’s investments
may include the activities of its sponsored funds and insurance
subsidiaries. For additional information about KKR & Co. Inc.
(NYSE: KKR), please visit KKR’s website at www.kkr.com and on
Twitter @KKR_Co.
About H.I.G. Capital
H.I.G. Capital is a leading global alternative investment firm
with $58 billion of capital under management.* Based in Miami, and
with offices in New York, Boston, Chicago, Dallas, Los Angeles, San
Francisco, and Atlanta in the U.S., as well as international
affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá,
Rio de Janeiro and São Paulo, H.I.G. specializes in providing both
debt and equity capital to small and mid-sized companies, utilizing
a flexible and operationally focused/ value-added approach:
- H.I.G.’s equity funds invest in management buyouts,
recapitalizations and corporate carve-outs of both profitable as
well as underperforming manufacturing and service businesses.
- H.I.G.’s debt funds invest in senior, unitranche and junior
debt financing to companies across the size spectrum, both on a
primary (direct origination) basis, as well as in the secondary
markets. H.I.G. also manages a publicly traded BDC, WhiteHorse
Finance.
- H.I.G.’s real estate funds invest in value-added properties,
which can benefit from improved asset management practices.
- H.I.G. Infrastructure focuses on making value-add and core plus
investments in the infrastructure sector.
Since its founding in 1993, H.I.G. has invested in and managed
more than 400 companies worldwide. The firm’s current portfolio
includes more than 100 companies with combined sales in excess of
$52 billion. For more information, please refer to the H.I.G.
website at www.higcapital.com.
*Based on total capital raised by H.I.G. Capital and its
affiliates.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230725893966/en/
Media For KKR: Miles Radcliffe-Trenner and Emily Cummings
(212) 750-8300 media@kkr.com
KKR (NYSE:KKR)
Historical Stock Chart
From Jun 2024 to Jul 2024
KKR (NYSE:KKR)
Historical Stock Chart
From Jul 2023 to Jul 2024