CEO of the Najafi Companies Jahm Najafi spoke briefly to the WSJ about his deal to purchase Direct Groug North America (DGNA) from Bertelsmann: “We’re very excited about this because we see great brands and excellent marketers. We have extensive experience in the online world and think we can change the nature of this business and grow it dramatically. We also think we can extend the club model to other products and services. We have never shied away from difficult businesses.”As the Journal notes, DGNA had sales last year of 900 million euros ($1.42 billion), with approximately 13 million members. […]
M&A
A Buyer for Direct Group NA
The answer to the question “who would want to buy that?” Phoenix-based investment firm Najafi Companies has bought Bertelsmann’s North American Direct Group assets, which include their family of book clubs along with Columbia House. The sale is expected to close in the third quarter and financial terms were not disclosed. (It was subsequently revealed in Bertelsmann’s annual report that the sale “generated proceeds of €19 million,” and Bertelsmann recorded a capital loss of €-18 million.) CEO Jahm Najafi says in the announcement, “We are very excited to enter the direct-to-consumer business and to work closely with Direct Group North America’s […]