For the fourth time in just less than 10 years, Baker & Taylor is about to get a new owner. In a letter sent to publishers, ReaderLink CEO Dennis Abboud wrote that the two parties have signed a letter of intent under which ReaderLink will acquire the business and substantially all of the assets of B&T, including Baker & Taylor Distribution Services. The acquisition is expected to close on September 26.<\/p>\n
According to the letter, most of the current B&T management team and employees will join ReaderLink, including Aman Kochar, B&T\u2019s CEO and current owner who bought the library wholesaler from Follett Corp. in 2021<\/a>. As part of ReaderLink, Kochar will continue to head B&T\u2019s business, reporting directly to Abboud.<\/p>\n Although it is the country\u2019s largest library wholesaler, B&T has struggled to remain a profitable company in a low margin business. Following his acquisition of B&T, Kochar implemented a number of changes to try an improve its financial picture<\/a>, an effort that was only partially successful. Abboud alluded to B&T\u2019s problems, writing that \u201cthe last several months have been a challenging period for Baker & Taylor. The company has faced headwinds, including the pressures of operating independently, emerging from the COVID-19 pandemic, and overcoming the debilitating impacts and financial losses resulting from cyberattacks in 2022.\u201d<\/p>\n As part of the rationale for the deal, Kochar sent his own letter to library clients (later sent out by ReaderLink as well) explaining that ReaderLink, which distributes books to mass merchandisers such as Target, Walmart, and other large nontrade outlets, is \u201cwell-capitalized and maintains over $250 million in inventory across its six geographically optimized distribution centers, which will soon augment Baker & Taylor\u2019s existing operations centers.\u201d<\/p>\n The transaction, Kochar continued, brings additional resources to B&T\u2019s customers, \u201cincluding best-in-class in-stock positions, faster order turnarounds, and an expanded portfolio of library-tailored products while continuing Baker & Taylor\u2019s personalized customer service.\u201d Baker & Taylor and ReaderLink have done business in the past. In 2015, ReaderLink bought B&T’s publishing business,<\/a> which is now known as Silver Dolphin. <\/p>\n