Leading global investment firms KKR and H.I.G. Capital (H.I.G.) announced that an affiliate of H.I.G. will acquire RBmedia and support its next phase of growth and development.
RBmedia is the leading audiobook publisher in the world with a powerful digital distribution network that reaches millions of listeners around the globe.
“This acquisition marks a milestone achievement for RBmedia and represents the next chapter in our ongoing business growth and expansion,” said Tom MacIsaac, Chief Executive Officer for RBmedia. “Over the last five years, we have been privileged to work with the KKR team to create a leading company and to become a trusted partner for authors, publishers, distributors and voice actors, and we look forward to working with H.I.G. to build on that foundation.”
Since KKR’s investment in August 2018, RBmedia has doubled the size of its catalog – from over 31,000 to over 66,000 audiobooks – and expanded its distribution channels. During this period, RBmedia also experienced five years of double-digit revenue growth, invested in diverse content and expanded into international markets.
“Over the last five years, the RBmedia team has consistently delivered high-quality, award-winning content for customers and value for its authors and creators. It’s been a remarkable growth journey with a dedicated team and a sense of partnership and ownership that has led to great results for all of RBmedia’s stakeholders, including all employee owners who will participate in the positive financial outcome,” said Ted Oberwager, a Partner who leads the gaming, entertainment, media and sports verticals within KKR’s Americas Private Equity business, and Richard Sarnoff, Chairman of Media at KKR. “We have every confidence that H.I.G. will help take RBmedia to even greater heights.”
“The audiobook market is set for significant growth and investment in the coming years,” said Aaron Tolson, Managing Director at H.I.G. “We are thrilled to partner with RBmedia’s world-class management team and to help them build on their success to date as they continue to shape the digital media landscape.”
Upon closing of the transaction, all RBmedia employees will receive a cash payout based on their tenure with the company. Long-term employees will earn up to two times their annual salary.
Since 2011, KKR has supported its portfolio companies in awarding equity worth billions of dollars to over 60,000 non-management employees across more than 30 companies, and has committed to deploying this model in all control investments across its entire Americas Private Equity platform. KKR is also a founding member of Ownership Works, a nonprofit organization that partners with companies and investors to provide all employees with the opportunity to build wealth at work.
RBmedia was advised by Goldman Sachs & Co. LLC and LionTree Advisors. Simpson Thacher & Bartlett LLP served as legal counsel to RBmedia. Morgan Stanley & Co. LLC and RBC Capital Markets acted as financial advisors, and Latham & Watkins LLP provided legal advice, to H.I.G. Capital.
