Advanced Marketing Services and Baker & Taylor Enter into Letter of Intent on Assets Purchase
SAN DIEGO--(BUSINESS WIRE)--Advanced Marketing Services, Inc. (the Company) (Pink Sheets: MKTSQ), a leading provider of customized merchandising, wholesaling and contract distribution services, announced today that it has entered into a letter of intent with Baker & Taylor, the world’s largest book distributor, to sell the majority of its assets, excluding PGW, pursuant to section 363 of the United States Bankruptcy Code. The letter of intent is subject to the negotiation of a definitive asset purchase agreement and the approval of the bankruptcy court.
“We are pleased to enter into this letter of intent with Baker & Taylor and believe it marks a significant milestone in the restructuring of our business”
The asset purchase agreement will be subject to the requirements of section 363 of the bankruptcy code. Once the asset purchase agreement is finalized, the Company will file a motion with the United States Bankruptcy Court for the District of Delaware to request a bidding procedures hearing, expected to be held on February 16, 2007. Following the completion of the bidding process and an auction, if necessary, the Company anticipates a closing by March 15, 2007, as per the requirements of the letter of intent.
“We are pleased to enter into this letter of intent with Baker & Taylor and believe it marks a significant milestone in the restructuring of our business,” said Gary Rautenstrauch, President and CEO of AMS. “Baker & Taylor is a recognized leader in the book distribution industry and has the experience to seamlessly assume operations and continue meeting the needs of our customers.”
“An agreement with AMS will represent an important strategic addition to Baker & Taylor’s business. We are excited about the opportunity to work with AMS to foster and broaden the commitment to customer service and operational excellence that AMS is known for,” stated Richard Willis, Chairman, President and CEO of Baker & Taylor.
More information on this agreement and the court filing will be available at www.advmkt.com.
About Baker & Taylor
Baker & Taylor, founded in 1828, is the world's leading distributor of books, video and music products to public and academic libraries. It is also a global leader in the distribution of books and entertainment products to many of the country's leading brick and mortar retailers, Internet retailers, as well as thousands of independent book, music and video stores. Baker & Taylor is based in Charlotte, North Carolina and is ranked in the top 250 U.S. private companies by Forbes magazine. It serves customers in 125 countries around the world and has six distribution facilities strategically located throughout the country. Baker & Taylor is a portfolio company of Castle Harlan Partners IV, L.P.
About Advanced Marketing Services, Inc.
Headquartered in San Diego, California, the Company is a leading provider of customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The Company has operations in the U.S., Mexico, the United Kingdom and Australia and employs approximately 1,200 people worldwide. The Company provides a wide range of value-added services that provide its retailer customers with book buying advice, promotional support and expert supply chain management, to ensure the success of their book programs. The Company's proprietary Vendor Managed Inventory (VMI) software is a unique tool that allows its book specialists to manage efficiently and effectively the book distribution supply chain for the benefit of its membership warehouse club customers. Publishers Group Worldwide (PGW), an alliance of the Company's global contract distribution operations, provides independent publishers with exclusive full service English language sales and distribution services.
About Castle Harlan
Castle Harlan, founded in 1987, invests in controlling interests in the buyout and development of middle-market companies in North America and Europe. Its team of 20 investment professionals has completed 48 acquisitions since its inception with a total value in excess of $9.0 billion. The firm traces its roots to the start of the institutionalized private-equity business in the late 1960s.
Castle Harlan’s current portfolio companies, which employ more than 42,000 people, include Ames True Temper, a leading manufacturer of lawn and garden tools and accessories; RathGibson, a leader in the manufacture of stainless steel and high alloy precision-welded tubing; and, Perkins & Marie Callender’s, Inc., which operates and franchises 618 family restaurants in the United States and Canada.
Forward-looking statements in this public announcement are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements.