Baker & Taylor in Bid to Acquire AMS

On February 12, Advanced Marketing Services (AMS) announced that it had entered into a letter of intent with Baker & Taylor, to sell most of its assets, excluding Publishers Group West (PGW). The letter of intent is subject to the negotiation of a definitive asset purchase agreement and the approval of the bankruptcy court.

"An agreement with AMS will represent an important strategic addition to Baker & Taylor's business," said Richard Willis, chairman, president and CEO of Baker & Taylor, in a statement.

The asset purchase agreement will be subject to the requirements of section 363 of the bankruptcy code. Once the agreement is finalized, AMS will file a motion with the U.S. Bankruptcy Court for the District of Delaware to request a bidding procedures hearing, expected to be held on February 16, 2007. Once the bidding process and auction, if necessary, is complete, it is expected that Baker & Taylor will close on the purchase by March 15, 2007, per the requirements of the letter of intent.

In related news, a decision regarding the sale of PGW to either Perseus Book Group or National Book Network was postponed on Monday. According to the San Diego Union-Tribune, the bankruptcy judge, Christopher Sontchi, ruled that AMS could not sell PGW to Perseus Books and that PGW must be sold at auction on Thursday. The Union-Tribune noted that creditors were not pleased with the Perseus deal and argued that the small-publisher group would bring more if auctioned.

Watch for further updates in Bookselling This Week.