Apollo Management to sell off Affinion Group

Apollo Management is hoping to get $3 billion for marketing firm Affinion Group, according to reports. After it has paid off creditors, Apollo could be left with about $1.3 billion. The news has created interest among other private equity firms, according to the New York Post. Apollo bought Affinion for $1.8 billion in 2005.

(Reuters) – U.S. private equity firm Apollo Management is planning to sell marketing firm Affinion Group in a deal it hopes to fetch $3 billion, the New York Post reported.

Apollo could end up making about $1.3 billion after Affinion pays off other creditors, a source told the Post.

Stamford, Connecticut-based Affinion, which helps firms market products, filed for an initial public offering for up to $400 million.

Apollo has hired Deutsche Bank to find a buyer, while the suitors are mostly rival private equity firms, sources told the Post.

Apollo bought Affinion in a $1.8 billion leveraged buyout in 2005. Since then, Apollo has taken enough dividends out of the company to cover its down payment of $300 million, the Post said.

Apollo could not be reached for comment.
(Reporting by Sakthi Prasad in Bangalore; Editing by Dan Lalor)