Hedge fund buys magazine wholesaler Cowley Distributing Inc.

Chatham Asset Management, the hedge fund headed by Anthony Melchiorre, has snapped up another magazine wholesale operation — this one in the Midwest — to add to its American News Co. operation.

The newest acquisition is Cowley Distributing Inc., headquartered in Jefferson City, Mo.

The business distributes magazines to nine midwestern states.

American News Co. is the largest magazine wholesaler in the country with more than 70 percent of the market nationally, responsible for delivering magazines to retailers as well as billing, collections, sales and marketing.

The speculation in the industry is that ANC’s acquisition spree is not over.

The second largest magazine wholesaler is Hudson News, headed by James Cohen, who is still trying to nail down his deal to buy the embattled National Enquirer from American Media Inc., the tabloid publishing company that is 80 percent owned by Chatham.

The Cowley acquisition officially closed on Oct. 5. Terms were not disclosed according to David Parry, the president and CEO of ANC.