A Quick, Efficient Financing Process to Provide Liquidity and Enhance Value


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Business:

Founded in 1942, Johnson Publishing Company (“JPC” or the “Company”) is the preeminent publisher of EBONY and JET magazines and owner of Fashion Fair Cosmetics. These holdings comprise a lifestyle company inspired by the African-American experience, and have an unparalleled impact on Black America.


Transaction:

FocalPoint was engaged to raise capital to support their liquidity requirements, as well as finance the Company’s larger-scale growth initiatives.Despite the Company’s heritage, it struggled to raise traditional financing as a result of the decline of the publishing industry and the resulting impact on JPC’s cash flows.  FocalPoint was able to navigate the capital markets to find the right partner for the Company and the situation, and aligned JPC with Gibraltar Business Capital.


Challenges:

In recent years, JPC, along with the publishing industry, was challenged by declining circulation, subscription revenue and advertising revenue.  In 2011, the Company committed to a restructuring of the business in an effort to reduce operating expenses and better align the business with the new digital media industry.


Solution:

Recognizing the need for liquidity and growth capital, FocalPoint was engaged to manage this process on behalf of the Company. Within three weeks of engagement, FocalPoint had drafted an Offering Memorandum and quickly thereafter, received financing proposals and held management presentations with multiple interested investors. Once an LOI was signed, FocalPoint worked side-by-side with management to facilitate an expedited diligence process. Because of the competitive process managed by FocalPoint, the Company was able to secure the market’s best available structure and terms. Ultimately, FocalPoint aligned JPC with a strong capital partner that understood the dynamics of the publishing industry, allowing the Company to focus on executing its transformational growth plan.

Johnson Publishing has raised debt capital from Gibraltar Business Capital

FocalPoint served as exclusive financial advisor to Johnson Publishing Company

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“As the curator of the African American experience – past, present and future – we are thrilled to work with FocalPoint and Gibraltar as we reposition this iconic firm. The African- American segment continues to be important to American businesses and we are at the forefront.”

Desiree Rogers
CEO, Johnson Publishing Company