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Bertelsmann sells US book clubs

14.07.08 Philip Jones

Bertelsmann has sold its US book club business. Najafi Companies, a Phoenix Arizona-based private investment company, has agreed to acquire the direct-to-consumer business, known as Direct Group North America. The price paid was not disclosed.

It now seems likely that Bertelsmann will seek to offload its European book clubs, after it also closed down its China book club business. Bertelsmann announced the intention to sell Direct Group North America at its annual press conference in March of this year as part of a worldwide strategic review.

Thomas Rabe, c.f.o. of Bertelsmann who oversaw the Direct Group North America business, said: "We are pleased to announce the sale of Direct Group North America to Najafi Companies, whose past investments have demonstrated an ability to nurture and grow successful companies. Bertelsmann is committed to the US market and will redirect resources to other business opportunities."

“We are very excited to enter the direct-to-consumer business and to work closely with Direct Group North America's management team to ensure the future success and growth of the company,” said Najafi Companies c.e.o. Jahm Najafi. “We believe that the winning combination of great brands and dedicated employees signals an exciting new chapter in this company's story.”

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