Cendant to Sell Coupon Publisher to Carlyle

Cendant Corp., a direct-marketing company, said it has agreed to sell its discount-coupon publishing unit to buyout firm Carlyle Group for $345 million to focus on other businesses such as hotel franchising and real estate. Carlyle Group, with about $5 billion in capital under management, would pay $325 million for Entertainment Publications Inc., the No. 1 direct marketer and publisher of coupon books and discount programs. Cendant would retain a 16% stake, and expects an after-tax gain of $140 million. Cendant and Carlyle are based in New York. The sale of the Troy, Mich.-based unit is part of Cendant’s strategy of shedding businesses and raising funds to reduce debt and buy back shares. Besides franchises for rental car agencies and hotel chains such as Days Inn and Howard Johnson, the firm’s businesses include real estate brokerages, discount clubs, tax preparation and mortgage services. Cendant had 1998 sales of about $5.28 billion. Its shares fell 88 cents to close at $17.56 on the NYSE.