June 11--Follett said Thursday that it acquired the retail division of Nebraska Book Co., boosting the Westchester-based company's portfolio of college bookstores to nearly 1,200 locations.
In purchasing the assets and inventory of Nebraska Book Co., known as Neebo and including 211 on- and off-campus stores, Follett cements its ranking as the nation's largest operator of college bookstores. Its closest competitor, Barnes Noble, has about 715 locations.
Follett did not disclose terms of the deal.
The acquisition, completed Thursday, will expand Follett's university reach, including large campuses like Illinois State University.
It also reaffirms Follett's stance that a presence on campus is the key to luring students, parents and college alumni in search of everything from textbooks and sweatshirts to toothpaste, according to President and CEO Ray Griffith. "It's our sweet spot," he said.
Griffith, a Follett board member, was appointed president and CEO in May.
The deal comes at a time when the two oldest players in the college store business, Follett and Barnes Noble, are battling Amazon for market share in the $10 billion college retail market. On average, students spent nearly $700 each on books and supplies last fall, according to the National Association of College Stores, an industry group.
Neebo's business has struggled. The company reported a loss of more than $16.5 million in the nine months that ended Dec. 31, according to company documents.
Griffith, however, is undeterred, saying that Follett will pick up additional sales and profits by adding Neebo's stores and inventory to its roster. "It's a double-digit growth avenue for us," he said. "We believe that we are the best operators of on- and off-campus bookstores in America, and we know how to do it," he said.
For example, Griffith noted the company's buy-online-and-pick-up-in-store option for college consumers in need of quick supplies. "We're aware of Amazon and Barnes Noble, but this is where we excel and we can connect," he said.
To keep up with the competition, Griffith added that Follett is trying out new concepts to discover what campus customers want most, including a service that offers book delivery to consumers at a location of their choice within hours of an order.
In addition to its higher education and college bookstore business, Follett, which is a $2.6 billion privately held company, also offers educational materials in the K-12 level. A Follett spokeswoman declined to disclose the company's financial performance.
Lincoln, Neb.-based Nebraska Book Co. will continue to maintain its other businesses that include buying and selling textbooks and providing software and services to independent college retailers.
crshropshire@tribpub.com
