Follett Buys Baker & Taylor

Book wholesaler Follett Corporation has acquired wholesaler Baker & Taylor for an undisclosed price, Baker & Taylor announced on Monday, April 18.

Westchester, New York-based Follett is a top provider of technology, services, and print and digital content to PreK–12 libraries, schools, and higher education institutions, while Baker & Taylor, based in Charlotte, North Carolina, is a leading provider of books, video, and music products to public libraries and retailers worldwide.

The deal, which the Chicago Tribune said was the biggest in Follett’s 142-year history, will effectively consolidate the publishing industry’s wholesaling sector. Terms were not disclosed, but according to Follett, buying Baker & Taylor boosts its revenues from about $2.6 billion to $3.6 billion, and strengthens its presence in a number of markets, from public libraries to foreign countries.

Follett CEO and President Ray Griffith said that before the deal, his company generated about one percent of its revenues outside of North America. In comparison, markets outside of North America make up almost a third of sales by Baker & Taylor, which serves 120 countries.

Baker and Taylor had been put up for sale by its New York-based private equity owner, Castle Harlan, which has owned the company since 2006, according to the Tribune.

George Coe, Baker & Taylor’s current CEO and president, will continue to lead the business and will report directly to Griffith. Coe, whose new title will be Follett Group president, Baker & Taylor and Follett School Solutions, said the deal “brings together the two best teams in the public and school library sectors with capabilities uniquely focused on supporting lifelong learning.

“With Follett’s commitment to education and strong financial ability to invest in Baker & Taylor, we expect to build on our long-term vision for content distribution and expand the flow of innovative products, programs and services for all of our customers worldwide.”

Follett operates more than 1,250 campus bookstores in the U.S. According to the Tribune, Follett has bought five companies in the past year, and Griffith said the company’s sales have risen by two percent during fiscal year 2016.

“Follett operated the relatively small Book Wholesalers public library business for nearly a decade, and sold it to Baker & Taylor [in 2012] because it didn’t have enough scale to grow in the segment,” a Follett spokesman told the Chicago Tribune. “Purchasing Baker & Taylor gives Follett immediate scale with a leadership position in the public library business and customer relationships to support the business long term.”