Thomas H. Lee Co. has approached several suitors about buying its San Diego-based yellow pages directory publishing portfolio company, TransWestern Publishing Co. LLC, for more than $1 billion, executives familiar with the process said yesterday.
In selling the business – one of the country’s biggest independent telephone directories – the Boston-based buyout kingpin is aiming to capitalize on growing interest among financial investors in directories assets.
TransWestern, based in San Diego, Calif., has more than 330 phone directories in 25 states. It also offers its directories over the Web through its WorldPages.com subsidiary, which it acquired in 2001.
A spokeswoman declined to comment other than to confirm that Goldman Sachs Group has been retained to explore a sale.
Directory publishers Dex Media and Yell Group PLC as well as buyout firms including Bain Capital and The Carlyle Group are said to be interested in the company, the executives said.
It is unclear whether R.H. Donnelley Corp., one of the largest independent directory publishers, is interested.
Private-equity firms and other potential buyers are attracted to the directory business because it provides steady cash flow from advertising revenues. TransWestern, for example, has more than 230,000 advertising accounts, primarily consisting of small to midsized businesses.
In January, TransWestern announced revenue of $371 million and record Ebitda of $110 million.