NEW YORK, December 20, 1999 - Castle Harlan, Inc., the New York merchant bank, announced today it had reached a definitive agreement with Insilco Holding Co. to acquire Insilco's subsidiary, Taylor Publishing Company, one of the nation's leading publishers of high school and college yearbooks. The transaction price was set at $93.48 million, subject to adjustment for working capital.
Taylor Publishing, based in Dallas, had revenues in 1998 of $100 million, with yearbooks representing 91 percent of its business. The company also has a specialty publishing operation and offers reunion services.
David Pittaway, senior managing director of Castle Harlan, said Taylor sold several million yearbooks in 1999 for more than 5,000 schools. The company is generally regarded as the technological leader in the industry.
Taylor Publishing, a 60-year-old company, has strong brand recognition and loyalty and a solid reputation for high-quality products. In addition, the company believes that significant growth can be obtained in the markets it now serves and in new, untapped markets.
"We see enormous opportunities for selling additional products through the school distribution channels now being served by Taylor," Pittaway said. He noted that already among Castle Harlan's portfolio companies was Commemorative Brands, Inc., the leading manufacturer and distributor of class rings for high school and college students.
Taylor's specialty publishing activities involve trade books with an emphasis on sports, gardening, health and other specialized topics. Among the company's recent best sellers were Scottie Pippin's Reach Higher and John Elway's Comeback Kid. It publishes about 35 original titles each year.
The reunion services operation provides complete event planning for high school alumni. The business was launched in 1990, and the company believes it can be greatly expanded.
Taylor Publishing's current management team, headed by Craig Van Pelt, president, will remain with the company. Van Pelt has 23 years of experience in the yearbook industry.
The acquisition will be made by Castle Harlan Partners III, L.P., a $630 million private equity investment fund organized and managed by Castle Harlan.
Since its founding in 1987, Castle Harlan has completed acquisitions exceeding $4.5 billion. Castle Harlan's portfolio companies have included Delaware Management Company, the Philadelphia-based money-management firm with more than $32 billion in assets under management; Truck Components, Inc., the largest manufacturer of components for large-truck braking systems; Smarte Carte, the world's largest airport luggage cart rental company; and MAG Aerospace, the leader in worldwide manufacture of aircraft sanitation systems.
Currently among its portfolio companies are Universal Compression, Inc., a leading independent provider of natural gas compression equipment and services; Worldwide Flight Services, one of the world's leading providers of ground services to the aviation industry, which was acquired from AMR Corp. in March; and the Verdugt B. V. group of acid salts businesses, based in the Netherlands, which was acquired from BP Amoco in April.
Castle Harlan was founded by John K. Castle, a pioneer in institutionalizing private equity investing through limited partnerships and the former president and chief executive officer of Donaldson, Lufkin & Jenrette, the investment banking firm, and by Leonard M. Harlan, founder and former owner and chairman of The Harlan Company, a diversified real estate and corporate finance advisory firm.