Press Release: MidOcean Partners and Wasserstein Co., LP today announced an agreement for co-ownership of Prism Business Media, upon completion of Prism’s previously announced acquisition of Penton Media. Under the agreement, MidOcean Partners will acquire a 50% ownership interest in the combined Prism/Penton entity from Wasserstein Co. and its investment partners, Highfields Capital Management and Lexington Partners.
Anup Bagaria, vice chairman of Wasserstein & Co. and Tyler Zachem, a managing director at MidOcean Partners, will serve as co-chairmen of Prism.
“We are delighted to partner with MidOcean on this important transaction,” said Bagaria. “They bring significant operating expertise and together, our joint resources, media experience and commitment to these leading business-to- business brands will help ensure an exciting future for Prism.”
“MidOcean and Wasserstein share a belief in the future and potential of vertical business media,” added Zachem. “The combination of Prism and Penton creates a powerful brand in business-to-business communications and together, we have a unique opportunity to build on both companies’ traditions of success.”
The Prism acquisition of Penton is expected to close in the first half of 2007. Financial terms of the agreement between MidOcean Partners and Wasserstein Co. were not disclosed. UBS advised Wasserstein & Co. on its partnership with MidOcean.
Prism Business Media Inc. is a leader in business-to-business communication and information, connecting qualified buyers and sellers in 21 industry sectors. Prism’s growing portfolio of market-leading brands spans 71 magazines, 170 e-newsletters, 17 industry trade shows and more than 500 rich data products. Each month, more than 3.3 million unique visitors utilize Prism Web sites and services. Prism Business Media is owned by U.S. Equity Partners II, an investment fund sponsored by Wasserstein & Co., LP, and by co- investors Highfields Capital Management and Lexington Partners. For additional information on the company and its businesses, visit www.prismb2b.com.
Penton Media, Inc. (www.penton.com), a diversified business-to-business media company, provides high-quality content and integrated marketing solutions to the following industries: aviation; business technology Enterprise Information Technology; design/engineering; electronics; food/retail; government/compliance; hospitality; manufacturing; mechanical systems/construction; and natural and organic products. Penton produces market-focused magazines, trade shows, conferences, and online media and provides a broad range of custom media and direct marketing solutions for business-to-business customers worldwide.
About MidOcean Partners
MidOcean Partners is a premier private equity firm focused on the middle market. Based in New York and London, MidOcean is committed to investing in high-quality middle market companies with stable market positions and opportunities for growth. Targeted sectors include consumer and leisure, media, communications and entertainment, business and financial services and select industrial sectors.
About Highfields Capital Management
Highfields Capital Management LP is a Boston-based investment management firm that manages private investment funds primarily owned by institutional and private charitable foundations, school endowments and other institutional and private investors. The firm primarily makes long-term equity investments in securities of both public and private companies in the U.S., Canada and in foreign markets. It also invests in long-term mezzanine or other debt financing to fund business acquisitions or growth and has participated in leveraged buy-outs, venture investments and recapitalizations. Highfields was founded in 1998 and currently manages approximately $9 billion in investment funds.
About Lexington Partners
Lexington was founded in 1994 to provide liquidity to private equity investors interested in selling limited partnership interests. Today, Lexington is the largest independent manager of secondary private equity capital with $10 billion of committed capital. The firm’s seven secondary funds purchase buyout, venture capital and mezzanine limited partnership interests globally. Lexington also invests in primary partnership funds and has committed to more than 100 new partnerships over the last nine years. In 1998, Lexington formed Co-Investment Partners, an investment partnership with current capital of $1.5 billion. Since 1998, Co-Investment Partners has invested over $1 billion in more than 50 private equity transactions.
About Wasserstein Co.
Wasserstein Co., LP is a leading independent private equity and investment firm, focused primarily on leveraged buyout investments and related investment activities. The Firm manages capital on behalf of its institutional and individual investors, including public and corporate pension funds, foreign governmental entities, endowments and foundations, and high net worth individuals. The Firm historically has made investments in media, consumer products and other industry sectors. Representative investments include ALM Media, Harry & David, Mastercraft, Hanley Wood, Real Estate Media, Sportcraft, The Deal and New York Magazine.