Business Weekly - Cambridge, UK

Headquartered in Welwyn Garden City and employing over 630 staff across Hertfordshire and Diss in Norfolk, Bounty is the UK's largest parenting club and online community for new and expectant mums.

The agreement to purchase the business from Bounty management and private equity house ECI Partners together with plans for a $115m (£56.1m) fund-raising is a huge corporate milestone for Kaboose.

"The acquisition of Bounty is the biggest and most exciting step we have made in our company's history," said Jason DeZwirek, chairman and CEO at Kaboose.

"Bounty has an unparalleled market position in the UK and a fantastic recognisable brand with new and expectant families.

"The UK is Kaboose's second largest audience and the acquisition of Bounty will enable us to maximise relations with significant European online traffic. As we extend our strategy to international markets targeting the young family audience, we believe that we have identified the best company in Europe to meet our goals."

Kaboose is the largest inde pendent, family-focused online media company in North America and one of the top-five most visited family destinations online. From pregnancy to parenting, birthday parties to scrap-booking, and entertainment to education, Kaboose has the content and applications to help parents plan and share their family life.

Bounty generated revenues of almost £20m and profits of £3.5m in 2006. It has built its position through exclusive contracts with most UK-based hospitals, established relationships with brand owners and direct access to over 95 per cent of the estimated 750,000 annual births in the UK.

Approximately £5.8m of the purchase price will be satisfied through the issue of 4.2 million common shares of Kaboose to the Bounty shareholders, £8.2m through loan notes that will be due in June 2008 and the balance will be paid in cash, which will be financed through the $115m bought deal equity offering.

The firm believes the acquisition from management and private equity house ECI Partners, will consolidate its position as the number one UK life-stage marketing and advertising platform focused on new and expectant mums and young family households.

The existing management team will continue to lead the firm under Simon Williamson, who has been managing director since 2002.

"This is good news for our NHS and brand partners and for our growing UK member base of new and expectant mums," said Williamson. "The combined company makes for a powerful and dynamic international media and marketing platform.

"We are especially excited by the combination of management skills, online properties and marketing technologies now at our disposal, as this will enable us to take our relationship with client brands and young families to a completely new level."

Over 48 years Bounty has become a credible, independent source of information, products and services for new and expectant mothers, providing information, support and products to UK families throughout the four key-life stages for young families: prebirth, birth, toddlers and preschool.

The business helps global advertisers reach this coveted audience through online media and direct marketing, a professional health network and product sampling, podcasting, photography and online photos and parenting guides.

It has key partnerships with UK maternity hospitals and leading FMCG (Fast Moving Consumer Goods) brands - such as Procter & Gamble, Kimberly-Clark, Unilever, Johnson & Johnson and ASDA distributing over 3.4m essential product sample packs and 2.6m parenting guides to families across the UK every year.

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