Biblica seeks buyer for distribution division to ‘build on success’

STL Distribution North America (STLD), the second largest Christian products distributor, has been put up for sale.

The owners are looking for a possible purchaser for the Elizabethton, Tenn.-based wholesaler as part of “an ongoing strategic review of our ministry operations,” said Doug Lockhart, CEO of Biblica, North America, when he announced the move in August.

Dating back almost 40 years and with annual revenues of around $40 million, STLD is smaller than Spring Arbor, part of the Ingram Content Group.

Days prior to the disclosure of the hunt for a buyer, STLD unveiled plans for a $1 million-plus print on demand investment—which President Glenn Bailey said would not be affected by the proposed divestiture.

The Biblica board has retained an advisor “to assist us in evaluating future opportunities for STLD,” Lockhart said. “With an expanded single building facility in Tennessee, a West Coast warehouse and a coming print-on-demand solution, we are assessing our core strengths and determining the best path for STLD to grow and flourish in the future.
“ As part of this process, we are reviewing all options including growing STLD within the Biblica ministry or seeking a new ownership partner to take the organization forward.”

Lockhart told Christian Retailing that there was no set deadline for the review “and if a suitable ownership partner is not identified, we will continue to operate the business and work to build on the strong foundation we’ve established.”

The move followed a year in which STLD had remained, “roughly flat,” Bailey said at June’s International Christian Retail Show, despite the continuing tough economy and the loss of a number of independent bookstores. Business has been grown in the church bookstore market, overseas, and through the expansion of inventory, he added.

Lockhart said that STLD was “financially sound. ... We feel this may be the opportune time to find a new home for STL with someone who can take it forward from here and build on our success.”

STLD’s 120-odd staff were told about the possible sale Aug. 6. More than a dozen potential buyers are understood to have been contacted by P&M Corporate Finance, an investment bank based in Chicago, where officials did not respond to inquiries.

The Biblica announcement is the second time the business has been put on the block in five years.

The former Appalachian Distributors founded in 1973 by Tom Torbett was bought by U.K.-based Send the Light (STL) in 2005, which renamed the operation STL Distribution North America.

Two years later, STL merged with the International Bible Society (IBS)—based in Colorado Springs, Colo.—to form a new global organization, IBS-STL. That new organization changed its name to Biblica in 2009.

Last fall, STLD consolidated its four warehouses, moving to a new facility in Elizabethton to increase space and improve shipping efficiency.

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