Quarto Publishing Group USA has acquired the assets of becker&mayer, the book packaging company based in Bellevue, Wash.
Quarto paid $9.8 million and agreed to provide up to $1.0 million for capital considerations, as well as another $1.25 million based on the financial performance of becker&mayer’s educational toy division, SmartLab, in 2018 and 2019.
In making the announcement, Quarto said the purchase will boost Quarto’s sales in the U.S., while also upping its presence in the children’s publishing market. Quarto said that about half of becker&mayer’s $19.4 million revenue in 2015 came from the children’s segment.
Becker&mayer, which was owned by the McEvoy Group, had EBITDA (earnings before interest, taxes, depreciation and amortization) of $300,000 and a net loss of $1.5 million last year. The loss was due entirely to the SmartLab unit, which had an EBITDA loss of $1.1 million in 2015. Quarto said SmartLab will be “re-engineered to include an emphasis on producing book-plus products” that can be sold by Quartro’s sales force around the world.
“We have a close working relationship with becker&mayer and we admire their people, creativity and specialist knowledge,” said Marcus Leaver, chief executive officer of Quarto. Becker&mayer, Leaver added, will “make a good cultural strategic fit” with Quarto.
The McEvoy Group, which also owns Chronicle Books, bought becker&mayer in February 2005. The company is expected to remain in Bellevue.