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Direct Holdings Worldwide LLC has bought Time Life Inc., the music and video direct marketing subsidiary of Time Inc.
Time Life will be owned and operated by Direct Holdings, which was formed when Ripplewood Holdings LLC and ZelnickMedia purchased Lillian Vernon Corp. this past July. Terms of the transaction were not disclosed.
“Given our desire to concentrate on high-growth opportunities in Time Inc.'s core magazine businesses and brands, selling the Time Life direct marketing division to the right buyer made strategic sense,” said Ann Moore, CEO of Time Inc. in a statement.
The two entities are expected to have 2004 revenue totaling $500 million.
The company plans to be a leader in music and video sales under the Time Life brand, as well as a leader in the gift, household and children's merchandise categories under the Lillian Vernon brand, according to a statement. Under the transaction, Direct Holdings gets an exclusive, long-term license for worldwide use of the Time Life brand in the direct marketing of music, video, books and educational software.
Ripplewood manages $4 billion through four institutional private equity funds. ZelnickMedia is a partnership of executives that owns interests in, advises and manages an array of enterprises in direct marketing, recorded music, entertainment content, compact disc manufacturing, online games and media-related software.
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