Business News

Najafi Companies to Acquire Direct Marketing Unit from Bertelsmann

Monday 14. July 2008 - Direct Group North America is home to household brands such as 'Book-of-the-Month Club' and 'Columbia House'

Najafi Companies, a Phoenix, Arizona-based private investment company, has agreed to acquire the direct-to-consumer business, Direct Group North America, from Bertelsmann AG the two companies announced today. The sale agreement, which was entered into earlier this week, is expected to close in the third quarter of 2008. Financial terms between the parties, both privately held, were not disclosed.

Direct Group North America is one of the largest direct marketers of books, DVD’s, and recorded music in the U.S. and Canada. Its many well-known consumer brands, such as “Book-of-the-Month Club” and “Columbia House,” serve millions of members through their club catalogs and online.

“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,” said Najafi Companies CEO Jahm Najafi. “We believe that the winning combination of great brands and dedicated employees signals an exciting new chapter in this company’s story.”

“We are pleased to announce the sale of Direct Group North America to Najafi Companies, whose past investments have demonstrated an ability to nurture and grow successful companies. Bertelsmann is committed to the US market and will redirect resources to other business opportunities,” said Thomas Rabe, CFO of Bertelsmann AG, who oversees Direct Group North America business on the Executive Board. Bertelsmann announced the intention to sell Direct Group North America at its Annual Press Conference in March of this year as part of a worldwide strategic review.