Barnes & Noble to Purchase Ingram Book Group

Posted on November 9, 1998

Barnes & Noble, Inc., has announced an agreement to purchase the Ingram Book Group, a privately held subsidiary of Ingram Industries Inc., for $600 million: $200 million in cash and $400 million in stock. The Group includes Ingram Book Company, a leading wholesaler of general trade books; Retailer Services, Inc.; Ingram Periodicals, Inc.; Spring Arbor Distributors, Inc.; Publisher Resources, Inc.; Ingram International, Inc.; Tennessee Book Company; Lightning Print, Inc.; and Ingram Library Services, Inc.

As a result of this transaction, Ingram will become a major component of the Barnes & Noble distribution network. The Ingram Book Group will continue to supply books to current customers including independent bookstores, specialty retailers, and libraries, in the U.S. and abroad.

The agreement was announced jointly by Leonard Riggio, chairman of Barnes & Noble, Inc., and John R. Ingram, chairman of Ingram Book Group. Mr. Ingram will continue to serve as chairman of Ingram and will also become a member of the Board of Directors of Barnes & Noble and serve as a vice chairman.

"I couldn't possibly spell out all of the many benefits and synergies we will realize as a result of this transaction," Mr. Riggio said today. "For starters, let me say that it will enable us to create a strategic business unit which will revolutionize book distribution in the next century. Not only will we be capable of quickly delivering every book in print, but through Lightning Print, Inc., and through our network of affiliates, we intend to facilitate rapid deliveries of millions of titles which are now out of print. This sets up to be a virtual bonanza for every book lover in the world."

Amazon.com released the following statement regarding the Barnes and Noble acquisition.

"Amazon.com currently purchases books from a variety of sources, including Ingram. Our long-term strategy has been to diversify our supplier base and to increase our direct purchasing from publishers. We anticipate that this trend will continue for some time to come."

"That said, Ingram is the largest book distributor in the United States, and many independent book stores rely on it as their sole source of supply. The combination of the country's biggest book retailer with its biggest distributor, and, given the recently announced Bertelsmann transaction, its biggest publisher group, undoubtedly will raise industry-wide concerns. Like other independent booksellers, we hope that Ingram resolves those concerns with a strong commitment to treating all bookstores fairly."

"To our customers: Worry not," said Amazon.com founder and CEO Jeff Bezos. "Those who make choices that are genuinely good for customers, authors, and publishers will prevail. Goliath is always in range of a good slingshot."