Pfingsten Publishing Acquires Spectrum Business Communications

Business Wire, Nov 8, 2000

Business Editors

CLEVELAND--(BUSINESS WIRE)--Nov. 6, 2000

Transaction Extends Business-to-Business Publisher Into the Industrial Market, Providing New Vertical Platform for Future Add-On Acquisitions

Pfingsten Publishing, L.L.C., a business-to-business publishing company headquartered in Cleveland, today announced the acquisition of Spectrum Business Communications, Inc., of Fort Atkinson, Wisconsin, a publisher of trade magazines for the industrial market.

Spectrum publishes MRO Today and Progressive Distributor for purchasers, suppliers and distributors of maintenance, repair and operations products, Contractor Tools & Supplies for purchasers of construction products, and Productivity for decision makers involved in improving material handling at manufacturing and warehouse facilities.

Effective October 31, 2000, the purchase is a strategic acquisition designed to add a new vertical platform to Pfingsten's portfolio of publications. Pfingsten currently serves the financial services market with Life Insurance Selling, American Agent & Broker and Mortgage Originator. It also addresses the art marketplace with DECOR magazine for art and framing retailers, the DECOR Expo series of trade shows, and the art21 series of fine art shows.

The addition of Spectrum's industrial-oriented publications gives Pfingsten a third specialty market to develop, both through internal growth and future acquisitions.

"The acquisition of Spectrum and its four publications allows us to enter the industrial market with considerable breadth of content and multiple revenue streams," said Joseph M. Bennett, President of Pfingsten Publishing. "It is a strong addition to our portfolio and one that gives us an excellent springboard for further expansion."

The three principals and 27 employees of Spectrum have joined the Pfingsten Publishing organization. They will continue to operate out of Spectrum's Wisconsin offices.

"Joining forces with Pfingsten gives us an opportunity to accelerate the growth of our business," said Robert B. Lederer, formerly president of Spectrum Business Communications and now group publisher in charge of Pfingsten's industrial publications. "By combining our strengths with Pfingsten's financial resources and publishing competencies, we expect to be able to build an increasingly larger presence in specialty publications aimed at the needs of industry."

The acquisition is the fourth addition to Pfingsten Publishing's portfolio in 18 months. The activity reflects an aggressive growth initiative that encompasses the purchase of new publications as well as trade shows, electronic products and ancillary products that complement the markets served by Pfingsten's publishing properties.

In May 1999, the firm acquired Commerce Publishing Company's Life Insurance Selling, American Agent & Broker, DECOR and Art Buyers Caravan trade show properties (now known as DECOR Expo). Mortgage Originator, the leading trade magazine covering the mortgage origination business, was added in March 2000 to broaden Pfingsten's financial services group. That transaction was followed by the September 2000 purchase of art21 Productions, a producer of fine art shows that expanded Pfingsten's art and framing group. art21's properties include art21 Las Vegas, The Palm Springs International Art Fair and the new Art International LA scheduled to debut in 2001.

Pfingsten Publishing is owned by Pfingsten Partners, L.L.C., a private equity firm based in Deerfield, Illinois, that acquires and grows middle market companies in partnership with management. The firm focuses on companies involved in manufacturing, wholesale distribution and publishing. Pfingsten Partners formed Pfingsten Publishing in 1998 as a vehicle to help select, manage and grow publishing acquisitions in specialty fields.