Moore Stephens sells Reader’s Digest to Jon Moulton business

Moore Stephens sells Reader's Digest to Jon Moulton business

Jon Moulton's Better capital vehicle buys Reader's Digest - but pension liability stays within the old company structure

Reader’s Digest has been bought out of administration in the UK by a private
equity vehicle owned by Jon Moulton.

Better Capital’s BECAP fund backed a management buyout of the business in a
deal worth £13m.

Administrators from
Moore
Stephens
had been appointed in February to the UK arm of the
business after plans to deal with its pension liability fell through.

The £125m pension liability will remain in the “old” company, with
discussions on how to deal with it to continue between the
Pensions
Regulator
, the
Pension
Protection Fund
and the administrators.

The UK arm will have no bank debt through the deal, and publish the magazine
through a licensing deal with its US counterpart.

“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,” said Mark
Aldridge, CEO of Better Capital.

Further reading:

Readers
Digest US parent could be held liable for UK pensions deficit

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