Reader's Digest finds new buyer

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Reader's Digest in the UK has been bought out of administration by Better Capital, well-known private equity veteran John Moulton's investment firm.The 72-year-old British edition went into administration in February after its US parent was unable to support it following a pension fund crisis.

Better Capital said it had backed a management buy-out in a £13m deal.

The US parent has agreed to let the company publish using the Reader's Digest brand under licence.

"It's rare to have an opportunity to back a dynamic management team to run a business with the heritage and brand strength of Reader's Digest," said Mark Aldridge, chief executive of Better Capital.

He said the new management team envisaged no "fundamental changes" to the business, which employs 100 people.


"With greater investment and expansion through the internet," he said, the magazine could reach a much wider audience.This article is from the BBC News website. ? British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.