THE MORNING CALL, June 21, 2017

EMMAUS — Amid difficult economic headwinds that have roiled the publishing industry, Rodale Inc. is considering a total sale of the company founded by visionary J.I. Rodale in the Lehigh Valley nearly 90 years ago.

The private Emmaus publishing company announced Wednesday that its board of directors is exploring “potential strategic alternatives” for its portfolio of lifestyle brands, including Runner’s World, Men’s Health, Women’s Health and Prevention magazines.

Those alternatives also may include the sale of the company as a whole or the sale of select properties, groups of properties or individual businesses. The board also may continue to implement its existing business plan.

Rodale employs roughly 700, including about 450 in the Lehigh Valley. There were no job reductions related to Wednesday’s announcement, general counsel Paul McGinley said.

The moves continue major high-level shake-ups and turnover for Rodale since at least 2015. Maria Rodale, the third-generation CEO and chairwoman of the publishing empire, has moved to restructure operations as she grapples with changes upending the print media business model. Late last year, she described it as a “transformational time” for the company as it adapts to the shift to digital media.

Tony Iannelli, CEO of the Greater Lehigh Valley Chamber of Commerce, said the company has been one of the most visible in the Lehigh Valley, receiving national and international recognition.

“The hold-your-breath piece in all of this is how does it affect the employee base?” he said. “The more people we have in the Lehigh Valley earning good pay at a good company, the bigger effect it has on our economy.”

Deep Lehigh Valley roots

J.I. Rodale soon became interested in organic farming, and in 1940, he and wife Anna bought land just outside Emmaus and converted it into a working organic farm. In 1942, Rodale Press started publishing Organic Farming and Gardening magazine, and five years later he created the Soil and Health Foundation, a forerunner to the Rodale Institute, a nonprofit based in Maxatawny Township.

Prevention magazine debuted in 1950, and J.I.’s son Robert Rodale took over as CEO in 1978. He acquired Runner’s World in 1985.

“The Rodale family and Rodale board are cognizant of their … heritage in the Lehigh Valley, and that heritage is important to them,” McGinley said. “At the same time, we’re looking for the best possible outcome for the company.”

An expert who follows Rodale said the decision might be a “trial balloon” to help the company determine its true valuation from an outside source.

“The reason I am saying it’s a trial balloon is they are telling you they are not commenting, and they might not do anything,” said Samir A. Husni, director of the University of Mississippi’s Magazine Innovation Center.

Husni said he highly doubts if Maria Rodale, 55, is prepared to “turn the page” on the storied family business.

Then again, he said, “At the end of the day, it’s a business.”

Industry turmoil

It’s certainly not the only challenge. In the same interview, Rodale touted the company’s “loved and well-respected brands” but acknowledged that reputation alone is not enough to sustain the digital disruption of the publishing industry.

“We’re rooted in print, but we’re expanding into digital and into modernizing the way we sell to customers through e-commerce and things like that,” said Rodale, who was not available for comment Wednesday. “It requires different skill sets; it requires different ways of doing business.”

The company today claims to engage more than 100 million customers worldwide through targeted products and services across all channels, including magazines, books, online, mobile, e-commerce, direct-to-consumer, social, video and events.

Peter Kreisky, of Kreisky Media Consultancy in New York, said Rodale and other media giants have been competing in an arena that has also included “unfamiliar competitors” from the digital era.

“Unless Rodale can find access to capital, they’re going to have a difficult time staying afloat,” Kreisky said.

In a memo sent to employees Wednesday and reviewed by The Morning Call, Rodale cited recent efforts to create a smaller, more agile business that would allow it to generate “the means to reinvest in our future.”

But she added that the company is going to invest a lot more to adequately deepen connections with readers across a greater variety of platforms.

Husni and Kreisky said possible suitors could be publicly held media giants such as Meredith Corp., the Midwest owner of Better Homes & Gardens and other publications, as well as 17 TV stations.

Given the compatibility of their portfolios, “Meredith would be a No. 1. choice,” Husni said.

Art Slusark, Meredith’s chief communications officer, declined to comment on whether the two companies have been in negotiations.

“We are always interested in adding attractive media properties to our portfolio,” Slusark said. “We have tremendous respect for Rodale and its brands and look forward to participating in the process.”

Maria Rodale reassumed control of day-to-day operations of the company in late 2015 after former President Scott Schulman’s contract was not renewed. She replaced four other executives in the months following.

Her tenure since then has brought repeated reports on company job cuts and departures by key editors and executives.

In November 2015, the company shut down its custom content agency, Rodale Grow, bucking the industry trend of investing more in marketing services.

Last year, Rodale made national news when the company announced Prevention, one of its flagship magazines, would go entirely ad-free.

This March, Rodale announced a number of other major personnel moves, and significant job reductions followed in May.

The same week, the company announced the “winding down” of its legacy direct-mail business, which markets books directly to consumers. The company said it was pivoting to focus on fast-to-market products that allow it to react quickly to its customer data and consumer trends as well as digital offerings such as on-demand video and in-depth health and fitness guides.

Rodale told employees Wednesday that the board’s review process may take several months. McGinley, the general counsel, reiterated the company had “no preconceived notions” about its outcome.

Employees learned Wednesday afternoon about the board review through Maria Rodale’s email, according to an employee who did not want his named used because he’s not authorized to speak on behalf of the company.

Given the recent downsizing and job cuts, the potential sale of the company caught employees by surprise, the employee said.

In a statement Wednesday, Maria Rodale said the company is “excited to explore opportunities for potential buyers of our business.”

“For over 70 years, Rodale has inspired exceptional customer loyalty through its uncompromising commitment to the creation of health and wellness content with a purpose,” she said. “We believe that Rodale’s brands can continue to expand and deepen their connectivity with consumers across all platforms through targeted investment and expertise in leading edge technology, brand-building, and commercialization.”

awagaman@mcall.com

Twitter @andrewwagaman

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Reporter Christina Tatu contributed to this story.