Reynolds and Reynolds Sells Information Solutions Group
DAYTON, OH—An $800 million printing and document outsourcing giant is about to emerge, as Reynolds and Reynolds, based here, spins off its Information Solutions Group (ISG) to The Carlyle Group for $360 million cash. The Carlyle Group, founded in 1987, is a Washington, D.C.-based global, private equity firm that organizes, structures and acts as lead equity investor in management-led buyouts, private placements and venture capital transactions. Carlyle has more than $10 billion of capital under management.
Rodney Hedeen, president of ISG, will become CEO of the new company. The name of the business will be revealed when the transaction closes during its fourth fiscal quarter, which ends September 30. ISG’s current 12-month revenue run rate is about $800 million.
Hedeen has been president of the division since January 1997. Hedeen joined Reynolds in 1987 as senior vice president of manufacturing/distribution and was named senior vice president of operations in 1989. In 1990, he was named senior vice president and general manager of the Forms and Systems Group. Before joining Reynolds, Hedeen held positions at Cummins Engine Co. in Columbus, IN, Hillenbrand Industries in Batesville, IN, and General Electric in Louisville, KY.
“We see no significant changes in the workforce and intend to keep the company headquarters in the Dayton region,’ Hedeen reveals. “We are clearly on a mission to grow the business and extend our market leadership.’
David R. Holmes, Reynolds chairman and CEO, adds, “We’re very happy that Carlyle plans to retain the management team, the ISG associates and headquarters in the Dayton area.’