The media company owned by multibillionaire Ronald Perelman paid $ 25 million for a minority stake in infomercial maker Guthy-Renker Corp.
The deal gives Guthy-Renker cash to make more commercials and tie up chunks of media time.
But perhaps more important, it gives the Palm Desert company more outlets for its infomercials and it gives Perelman new ways to market his consumer products.
“Under one roof, we have it all,” said Greg Renker, a principal of the infomercial company.
The deal calls for Perelman’s Andrews Group to acquire roughly a third of Guthy-Renker. Sources say Perelman can buy up to 49% of the company.
The deal adds to Perelman’s growing media portfolio, which already includes SCI Television, with seven network TV affiliates; New World Television, TV producer and distributor; Marvel Entertainment Group; and Genesis Entertainment, a production and syndication company.
Perelman also controls cosmetic maker Revlon; Coleman Co., the outdoor equipment maker, and a handful of others.
“We believe the benefits are obvious and mutual,” Andrews CEO William C. Bevins Jr. said in a statement. “Our stake in Guthy-Renker gains us a foothold in transactional television. In the 500-channel world in which we will all soon be living, this is a necessity, not an option.”
Perelman’s Revlon is readying an infomercial for a new Dolly Parton line of goods that Guthy-Renker will distribute.
Guthy-Renker, in turn, guarantees itself cheap time on the SCI stations. The company also plans to tap into New World’s distribution channels, to air its infomercials overseas.
“I wouldn’t be surprised if the Andrews Group ends up with more than seven stations sooner rather than later,” Renker said.