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Intervisual Books Inc. Announces Letter of Intent to Acquire Fast Forward Marketing Inc.
SANTA MONICA, Calif.--(BUSINESS WIRE)--Feb. 3, 1999--
Proposed Acquisition of This Leading Video Sales Organization Is Expected to Double Intervisual's Revenue and Brings Established Sales
Force and National Account Base
Intervisual Books Inc. (IBI)(Nasdaq:IVBK), the world's leading creator and producer of interactive pop-up books for children and adults, Wednesday announced that it has entered into a letter of intent to acquire privately-held Fast Forward Marketing Inc., Marina del Rey, Calif., a leading independent sales organization that distributes video and audio products for major motion picture studios, including Walt Disney, Warner Bros., Universal, Paramount, 20th Century Fox, and many independent producers.
"Based upon Fast Forward's 1998 preliminary results, we expect this acquisition to double IBI's 1999 sales to over $30 million and to contribute to improved bottom line performance," said Norm Sheinman, president and chief operating officer of IBI.
"There is more," the COO continued. "Since its founding by Steven Ades in 1987, Fast Forward has built an account base of more than 4,000 retailers, including national chains such as Toys R Us, Blockbuster, Target, Borders, Musicland and Best Buy, as well as specialty retailers such as Zany Brainy, Store of Knowledge, Noodle Kidoodle, Gymboree, Books A Million and other children's bookstores, gift shops, museums, zoos and Internet retailers such as E-Toys.
"Upon completion of this transaction, Steven and his proven sales organization are expected to join IBI, helping us to accelerate the implementation of two primary elements of our growth plan -- the distribution of self-published books and the development and marketing of an exciting range of book/video sets of our own."
Under the terms of the proposed transaction, Fast Forward would be acquired for cash and IBI's common stock. The purchase price was not disclosed. The transaction is subject to standard conditions, including the negotiation and execution of a definitive agreement, the receipt of a fairness opinion, the completion of due diligence, and the finalization of financing.
Steven Ades, president of Fast Forward, who will be asked to join IBI's board of directors and become president of the company's New Media and Video Division, added: "Through my experience in the toy, book and video distribution industry, I've admired Intervisual for many years. It makes such good sense to combine our two companies. Our products are uniquely compatible.
Of the 55,000 videos and DVD's in our catalogue, fully half of the 10,000 best selling titles are family-oriented, so we know how to reach IBI's target market. The combined companies will continue to support the customers and suppliers of both companies."
Ades added, "By utilizing IBI's world wide sales presence, we will be able to offer international distribution to our independent producers whom we currently represent and distribute on a domestic basis."
Dan Reavis, IBI's executive vice president and chief financial officer, commented, "In addition to its financial impact, the acquisition also brings Fast Forward's management information system and operational infrastructure to IBI. These are valuable assets as we expand our self-publishing and book/video programs."
Sheinman also announced that Steve Selsky, vice president and chief financial officer of Fast Forward, and Steve Wallace, vice president of sales, are expected to join IBI upon completion of the transaction. "All three of the senior executives who built Fast Forward will become part of IBI's team -- Selsky as senior vice president of finance and operations, Wallace as senior vice president of sales," he said.
Prior to joining Fast Forward, Selsky was chief financial officer of Price Stern Sloan, a leading publisher of children's books that was acquired in 1993 by Putnam-Berkeley Group, New York. Wallace headed the sales operation at Price Stern Sloan before joining Fast Forward in 1993. He supervised as many as 60 sales representatives selling both adult and children's books throughout North America.
The forward-looking statements contained in this release are based upon various assumptions, and certain risks and uncertainties could cause actual results to differ materially from those stated. Factors that could cause such differences are disclosed in the company's filings with the Securities and Exchange Commission. The parties are in the process of preparing definitive agreements and there are no assurances that definitive agreements will be executed and the proposed transaction will be completed or that the currently contemplated terms of the proposed transaction will not change. Intervisual Books Inc. assumes no obligation to update forward-looking statements.
CONTACT:
Intervisual Books Inc., Santa Monica
Dan P. Reavis, 310/396-8708 Ext. 206
KEYWORD: CALIFORNIA NEW YORK |
