UPDATE 1-Jon Moulton buys UK Reader’s Digest magazine

* Private-equity firm will invest 13 mln stg in publication

* Existing management will hold 35 percent stake

* Second deal for Moulton’s new vehicle

(Adds detail)

LONDON, April 9 (BestGrowthStock) – Jon Moulton’s Better Capital
(BCAP.L: ) on Friday said it had bought the UK arm of Reader’s
Digest from its administrator, securing the future of a monthly
magazine sent to nearly 500,000 readers.
The private-equity firm said on Friday it had bought the
business, which also sells books and CDs and runs a prize draw,
from administrators Moore Stephens LLP in a deal that will see
its existing management take a 35 percent stake.

Better Capital said it would commit 13 million pounds ($20
million) for the transaction and to fund future growth at the
publication, which made an operating loss of 1 million pounds on
revenue of 85 million pounds in the year to end-June 2008.

The company filed for administration in February after
regulators refused to approve a plan to rescue its pension fund.
[ID:nSGE61G0JH]

Its U.S. parent, Reader’s Digest Association Inc
[RPPLER.UL], has also run into difficulties, due to its $2.3
billion debt pile, but emerged from bankruptcy in February after
cutting the deficit by 75 percent. [ID:nN22188668]

RDA said in a statement it had reached a licensing agreement
with the new owners, which would ensure a long-term existence in
the UK for the brand.

Moulton, who bought aerospace components supplier Gardner
Group in February, said last month that around a third of the
deals he was considering were companies burdened by pension
deficits. [ID:nLDE6221ZB]

(Reporting by Paul Sandle)

UPDATE 1-Jon Moulton buys UK Reader’s Digest magazine