Private buyout firm OpenGate Capital completes acquisition of PennySaver USA
LOS ANGELES — OpenGate Capital, a global private buyout firm, announced today that it has completed the acquisition of PennySaver USA comprised of the Shoppers and PennySaver assets from Harte-Hanks, Inc., (NYSE: HHS) just one week after announcing it had signed an agreement to acquire the business. PennySaver USA, headquartered in Brea, California, represents the first California-based acquisition for OpenGate Capital, and it joins a portfolio of 12 other leading enterprises with operations throughout North America, Latin America and Europe.
PennySaver USA provides print and digital, hyper-local marketing and advertising services to California-based and nationwide customers. PennySaver USA is one of the largest and most well-recognized weekly local advertising publications in North America and is the number one Hispanic marketing publication in the US. The business serves more than nine thousand unique advertising customers, distributes 85 million inserts, and reaches more than nine million households. The digital division of PennySaver USA provides marketing products and services via online and mobile applications. The online classifieds, coupons and business directory website, PennySaverUSA.com, hosts nearly 4.4 million listings nationwide and offers several advertising options. The digital division also supports small and medium sized businesses by providing digital marketing services including PowerSites and PowerClicks. PowerSites provides full-service website hosting, creation, and maintenance solutions. PowerClicks offers qualified lead generation via search engine marketing and online display advertising.
Andrew Nikou, OpenGate Capital’s founder, Managing Partner and CEO, stated, “PennySaver USA is a powerful business given it is profitable and very stable, has tremendous brand recognition, and provides advertising products and services to its clients with incredible reach and frequency. We’re excited to leverage all of these strengths and create even more value for both the readers and advertisers. As proven by our success with TV Guide Magazine, we are really enthusiastic about media, publishing and advertising businesses in the US and know that there is a lot of hidden potential inside PennySaver USA.” OpenGate Capital acquired TV Guide Magazine in 2008 and within 18 months turned the business around making it more profitable, stable and diverse. OpenGate Capital also owns Fleurus Presse, a French publisher of magazines providing a wide range of reading subjects and materials.