The UK business of iconic publishing firm Reader’s Digest has been bought by its management team.

BECAP Fund LP has backed the management buyout of he UK arm – which went into administration in February – in a transaction valued at £13m.

The management team will be led by managing director, Chris Spratling, who said: "We are delighted to have completed the buyout and in doing so to have secured the future of a tremendously exciting business. We are now fully funded and debt free and can now focus on bringing our customers all the services and products that they have such huge affection for.”  

The business employs 100 people and is widely recognised as one of the UK’s leading marketers of magazines, books, music, video, financial services and healthcare products, supported by its prize draw offering.

The business had gone into administration as a result of significant UK pension liabilities. Reader’s Digest Association has agreed to allow the UK operations to publish under its brand name through a licence agreement.

Spratling added: "The iconic magazine and prize draw will continue but it should be remembered that these are just a part of a much larger business. There are tremendous opportunities for our businesses in financial services, books and healthcare and significant plans to expand all aspects of the Reader’s Digest business in the UK."