Meredith Completes Acquisition of Every Day with Rachael Ray From Reader's Digest Association
(Press Release) NEW YORK, Oct. 31, 2011—magazine and its related digital assets. In addition, Meredith Meredith Corporation (NYSE: MDP; www.meredith.com) and Reader's Digest Association announced today they have completed the agreement for Meredith to acquire Every Day with Rachael Ray announced it has finalized a 10-year licensing agreement with Watch Entertainment Inc. for the award-winning brand.
The acquisition includes the popular magazine that's published 10 times annually with a 7.4 million audience and 1.7 million ratebase. The first issue of Every Day with Rachael Ray published under the Meredith banner will be February 2012, available on newsstands in early January.
"We are energized to bring the Every Day with Rachael Ray brand to market as part of the Meredith portfolio," said Meredith National Media Group President Tom Harty. "It represents a very important piece of the strategy we are executing to significantly enhance our already powerful reach in the food space."
"We are thrilled that we've found a home for Every Day with Rachael Ray and its staff with Meredith," said Dan Lagani, President, Reader's Digest North America. "We've enjoyed working with Rachael and her team, and we are proud of the work we've done since the magazine's launch in 2005."
Harty noted that in the past four months Meredith has strengthened its position as the leader in food content with the:
* Launch of Recipe.com, a multi-channel food brand that pairs recipes with digital coupons and savings;
* Acquisition of the EatingWell Media Group, a multichannel brand focused on healthy eating;
* Introduction of six new Special Interest Media food titles, bringing the total to nearly 40; and
* Expansion of Meredith's leading food content across a broad array of tablet products including the iPad, NOOK Color, and the upcoming Kindle Fire.
Christine Guilfoyle will be rejoining Every Day with Rachael Ray as Publisher. Guilfoyle was the launch publisher of Every Day with Rachael Ray from 2005 to 2007. Under her leadership, the magazine was recognized as the "Launch of the Year" by both Advertising Age and Adweek. Most recently, Guilfoyle served as Publisher of Meredith's More magazine.
"Chris has a strong and deep understanding of the Every Day with Rachael Ray brand, and we feel confident her knowledge and experience will help us continue to build it across multiple platforms and in the experiential marketplace," says Tom Witschi, EVP, Meredith National Media Group, who oversees the More, Fitness, Every Day with Rachael Ray, EatingWell and Diabetic Living brands.
"As I have said before, for me everything is about family, so I am very pleased that our magazine is now officially part of the Meredith family," said Rachael Ray. "And I am thrilled to be reuniting with Chris Guilfoyle, whom I adore. I'm confident Chris will elevate our magazine to new levels, while continuing to over deliver for our advertising partners. Finally, I need to congratulate all the teams who worked tirelessly to make sure this transition would be smooth for our customers who look forward to receiving the award-winning content our fantastic staff create each month."
Prior to joining More, Guilfoyle was the Publisher of Women's Wear Daily, where she was responsible for advertising for WWD and wwd.com. In this post, Guilfoyle led the transformation of WWD from a trade newspaper publisher to a global media brand. During her tenure, the website was re-platformed, social media and mobile applications were launched and monetized, and the global sales staff was fully integrated into all aspects of brand sales.
Before joining Every Day with Rachael Ray, Guilfoyle was advertising director for Meredith's Better Homes and Gardens magazine. During her tenure BHG secured spots on Adweek's "Hot List" and Advertising Age's "A-List." She began her publishing career with positions at People, TV Guide and Omni magazines. Guilfoyle holds a Bachelor of Arts degree from Marist College. She currently resides with her family in West Nyack, NY, and will be based in Meredith's New York City office.
"I am really looking forward to reuniting with Rachael, who was always a great partner and collaborator," said Guilfoyle. "This is an amazing opportunity to work again with a brand that I launched and continue to admire in so many ways."
Meredith also announced Linda Fears, Editorial Director, Meredith Food Content, and Editor-in-Chief of Family Circle, will oversee all editorial content. Meredith is currently searching for an Editor-in-Chief of Every Day with Rachael Ray that will report to Fears.
Meredith Chief Development Officer John Zieser added, "We are constantly looking for strategic acquisitions and investment opportunities like this to expand our reach and create shareholder value."
Financial terms of the agreements were not disclosed, and the acquisition will not have a material effect on Meredith's fiscal 2012 financial performance.