Gary Appel, vice-chairman of Baker & Taylor's soon-to-be-new owner, Castle Harlan, said he remains confident about the wholesaler's long-term future, despite possible inroads into the company's business from various digital initiatives. "They have a very attractive organic growth plan," Appel said. According to Appel, Castle Harlan—which has agreed to pay $455 million for B&T—likes B&T's leading position in the library market and impressive financial track record over the last few years. B&T's sales will be about $1.6 billion this year, Appel said, compared to $1.2 billion when Willis Stein acquired the company in 2003 for $285 million.
Appel acknowledged that digital delivery of books, music and movies "could take away part of the market, but Baker & Taylor has a solid core business." Part of B&T's future growth is likely to come from expanding its direct-to-consumer business. The company, like other distributors, has made the fulfillment of orders placed over the Internet a meaningful part of its business. Appel wouldn't rule out niche acquisitions, though he emphasized the majority of growth will come from internal expansion. During the course of its three-year ownership, Willis Stein made three significant additions to B&T: Delta International Book Wholesalers; the STM wholesaler J.A. Majors; and Spanish-language distributor Libros Sin Fronteras.
Appel said no major changes in management are expected. "This is a partnership," he said, noting that senior executives at the company will retain an ownership stake. The company will continue to be directed by Richard Willis, B&T president and CEO, and be headquartered in Charlotte, N.C.
