EXHIBIT 99.1
Cendant Agrees to Sell its Entertainment Publications Unit
to The Carlyle Group for $345 Million
New York, NY, September 14, 1999CCendant Corporation (NYSE:CD) today
announced that it has agreed to sell its Entertainment Publications, Inc. unit,
the world's largest marketer and publisher of coupon books and discount
programs, to The Carlyle Group for $345 million in a leveraged recapitalization
transaction. Cendant will retain approximately 16% of Entertainment
Publications' equity and will receive $325 million in cash at closing.
The sale of Entertainment Publications is expected to generate an after-tax
book gain of approximately $140 million. The transaction is subject to customary
regulatory approvals and customary conditions and is expected to close in the
fourth quarter.
Michael H. Wargotz, Cendant Executive Vice President and CEO of Cendant's
Lifestyle Division which includes Entertainment Publications, stated, "This is
another milestone in our plan to divest certain non-core businesses. Also
exciting, however, is the opportunity to retain an equity position in
Entertainment Publications as it continues its history of profitability and
growth."
The Carlyle Group is a global investment firm that leads management
buyouts, growth capital financings, strategic minority equity investments and
venture capital financings. Founded in 1987, Carlyle has invested in 117
corporate and real estate transactions and currently has approximately $5
billion of capital under management.
Frank Yeary, Partner of The Carlyle Group and head of its Communications
Group, said, "We are pleased to partner with the strong management team at
Entertainment Publications in order to support and enhance its position as the
nation's leading coupon and fundraising products company." Francis Barker,
Principal in the Communications Group, commented, "Carlyle is eager to help
pursue Entertainment Publications' ambitious growth plan, which will take the
company into new markets, products and distribution channels."
Entertainment Publications, based in Troy, Michigan, generates high value
coupons and offers from 73,000 merchants representing 275,000 locations,
including popular restaurants, hotels, movie theaters, travel services, theme
parks, sports events, video rental, retailers and service companies. The coupon
books created from this database include The Entertainment Book(R),
Entertainment(R) Values, and Gold C(R). The company produces customized discount
programs for Fortune 1000 companies. Entertainment Publications owns the product
lines Sally Foster Gift Wrap(R), Summer Vacation7 and Restaurant Secrets7. In
1998, the company's products, including the sale of seven million coupon books,
enabled over 67,000 North American charitable and school organizations to raise
nearly $80 million in funds for their community and school activities. The
company's products are distributed in over 140 markets in the U.S., Canada and
Puerto Rico and in seven markets in Australia and New Zealand.
Veronis, Suhler & Associates acted as financial advisor to Cendant
Corporation and Merrill Lynch & Co. acted as financial advisor to The Carlyle
Group in connection with the transaction. CIBC World Markets Corp. and Merrill
Lynch Capital Corporation have underwritten $240 million of credit facilities to
effect the recapitalization.
Cendant Corporation is a global provider of consumer and business services.
The Company's core competencies include building franchise systems, providing
outsourcing solutions and direct marketing. As a franchisor, Cendant is among
the world's leading franchisors of hotels, rental car agencies, tax preparation
services and real estate brokerage offices. The real estate division also
includes Welcome Wagon/GETKO and the Company's residential real estate services
Internet portal which is currently under development. As a provider of
outsourcing solutions, Cendant is the world's largest vacation exchange service,
a major provider of mortgage services to consumers and the global leader in
employee relocation. In direct marketing, Cendant provides access to insurance,
travel, shopping, auto, and other services primarily to customers of its
affinity partners. Other business units include NCP, the UK's largest private
car park operator, and Wizcom, an information technology services provider.
Headquartered in New York, NY, the Company has more than 30,000 employees and
operates in over 100 countries.
More information about Cendant, its companies, brands and current SEC
filings may be obtained by visiting the Company's Web site at www.Cendant.com or
by calling 877-4INFO-CD (877-446-3623).
Media Contact: Investor Contacts:
Elliot Bloom Denise Gillen
212-413-1832 212-413-1833
Sam Levenson
212-413-1834