Kaboose sells assets for $120 Million

Toronto-headquartered Kaboose Inc. announced this morning that it has entered into two separate agreements which together will effect the sale of substantially all of its assets.  The two agreements will effect the sale of the Company’s UK business to a company controlled by funds managed by Barclays Private Equity Limited for approximately $97 Million and the sale of the Company’s North American business to Disney Online for $23 Million.

Jason DeZwirek, Chairman and Chief Executive Officer of Kaboose, said, “2008 was a difficult year for many businesses and shareholders, and Kaboose was no exception. With the fundamental shift in the sentiment of the capital markets in general and in the media and advertising sectors in particular, and having been approached by several large international media companies and global private equity institutions interested in our business, we felt compelled to re-examine our long-term plan.  With the advice of our financial advisors, the Company’s Board of Directors determined that Kaboose could divest its assets and realize significantly greater value than we could deliver as an independent public media company in the foreseeable future.”

This aquisition strengthens Disney’s position as a top entertainment destination for kids and families, and a trusted online resource for parents.  The new Web properties wil complement Disney Online’s category-leading kids and family sites, broadening their audience and infusing an array of new content into our sites, particularly in the baby and mom categories.

Following the completion of these two transactions, Kaboose intends on distributing the resulting net proceeds to its shareholders.  The Company expects that such net proceeds will result in approximately $0.65 per share being distributed to shareholders in the months following completion of the transactions, which distributions represent approximately a 70% premium to the thirty-day average closing price of Kaboose’s stock on the Toronto Stock Exchange.

Kaboose Inc. is a global media company fully dedicated to meeting the needs of moms and their families.  Kaboose ranks as one of the world’s top five family destinations and is a respected leader in the online parenting category in three of the largest English speaking countries – the United States, Canada and the United Kingdom.  

Kaboose’s websites Kaboose.com, Bounty.com, BabyZone.com, ParentZone.com, AmazingMoms.com, and Funschool.com. Kaboose trades on the Toronto Stock Exchange under the symbol “KAB”.