UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) June 29, 1998
Meredith Corporation
(Exact name of registrant as specified in its charter)
Iowa 1-5128 42-0410230
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1716 Locust Street, Des Moines, Iowa 50309-3023
(Address of principal executive offices) (ZIP Code)
Registrant's telephone number, including area code 515 - 284-3000
- 1 -
<PAGE>
Item 5. Other Events
On June 29, 1998, Meredith Corporation announced in a press release, attached
hereto as Exhibit 99, that it had agreed to sell the net assets of the Better
Homes and Gardens Real Estate Service to GMAC Home Services, Inc., a subsidiary
of GMAC Financial Services. The transaction is expected to be completed within
90 days.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
99 Press release dated June 29, 1998 issued by Meredith
Corporation.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
MEREDITH CORPORATION
Registrant
(Stephen M. Lacy)
Stephen M. Lacy
Vice President - Chief Financial Officer
(Principal Financial and
Accounting Officer)
Date: July 20, 1998
- 2 -
Exhibit Index
Exhibit #
---------
99 Press release dated June 29, 1998 issued by
Meredith Corporation.
Exhibit 99
----------
MEREDITH CORPORATION TO SELL ITS REAL ESTATE SERVICE
TO GMAC HOME SERVICES
DES MOINES, IA - (June 29, 1998) - Meredith Corporation (NYSE: MDP)
announced today that it has agreed to sell the net assets of the Better Homes
and Gardens Real Estate Service to GMAC Home Services, Inc., a subsidiary of
GMAC Financial Services. In a separate transaction, Meredith and GMAC Home
Services will enter into a licensing agreement that authorizes GMAC Home
Services to use the Better Homes and Gardens trademark in connection with
residential real estate marketing for a period up to 10 years.
Financial terms are not being disclosed, but the transactions will not
have a material impact on Meredith's financial performance. Closing is
expected to take place within 90 days.
As part of the agreements, GMAC Home Services will assume all current
contract obligations with franchisees of the Better Homes and Gardens Real
Estate Service. Allen Sabbag, currently Better Homes and Gardens Real Estate
Service president, will assume a similar role with GMAC Home Services.
"Industry consolidation over the past two years has dramatically changed the
real estate business environment," said Meredith Chairman and Chief Executive
Officer William T. Kerr. "This consolidation prompted a review of our current
real estate operations. We realized that, given these industry changes, it
made sense for Meredith to concentrate its resources on its core businesses of
magazine and book publishing and television broadcasting, which represent 97
percent of our operating profit. This led to our decision to seek strategic
alternatives for our real estate operations."
Kerr said Meredith used two key criteria in evaluating these alternatives.
"Foremost, we had an obligation to enhance shareholder value," Kerr said.
"Additionally, we take great pride in the Better Homes and Gardens brand and we
wanted to find an organization that shared our commitment of service to
franchisees.
"The proposal from GMAC Home Services fit our criteria," Kerr continued.
"We believe we can achieve better returns for shareholders by committing
corporate resources and management attention to publishing and broadcasting.
Additionally, GMAC Home Services has indicated its commitment to building the
real estate business. That's important to current Better Homes and Gardens
Real Estate Service employees and franchisees. We think GMAC Home Services
will be a good steward of the Better Homes and Gardens name during this
transitional period as the brand's association with residential real estate
marketing is phased out."
- 1 -
<PAGE>
Started in 1978, the Better Homes and Gardens Real Estate Service is a
franchised residential real estate network known for providing outstanding
customer service and tailored marketing programs to its member firms. It
consists of more than 800 member firms with nearly 26,000 sales associates in
the United States, Canada, Puerto Rico and abroad.
Meredith Corporation, headquartered in Des Moines, Iowa, is one of
America's leading media and marketing companies. Meredith businesses center on
magazine and book publishing, television broadcasting, and brand licensing.
The Meredith Publishing Group is the country's foremost home and family
publisher. The group creates and markets magazines including Better Homes and
Gardens, Ladies' Home Journal, Country Home, more, Country Home Country
Gardens, Country America, Midwest Living, Traditional Home, Renovation Style,
WOOD, Family Money, American Patchwork & Quilting, Decorative Woodcrafts, Cross
Stitch & Needlework, Crafts Showcase, Successful Farming, Mature Outlook,
Crayola Kids, Golf for Women, the American Park Network, 40 Special Interest
Publications, custom publications through Meredith Integrated Marketing, and
books titled under Meredith trademarks including the popular Better Homes and
Gardens New Cook Book.
The Meredith Broadcasting Group includes 11 television stations in
locations across the continental United States: KPHO-TV (CBS), Phoenix, AZ;
WOFL-TV (FOX), Orlando, FL; KPDX-TV (FOX), Portland, OR; WFSB-TV (CBS),
Hartford-New Haven, CT; KCTV (CBS), Kansas City, MO; WSMV-TV (NBC), Nashville,
TN; WHNS-TV (FOX), Greenville-Spartanburg-Anderson, S.C.-Asheville, NC.; WNEM-
TV (CBS), Flint-Saginaw, MI; KVVU-TV (FOX), Las Vegas, NV; WOGX-TV (FOX),
Ocala-Gainesville, FL; and KFXO-LP (FOX), Bend, OR.
- 2 -
