F & W Publications Inc. will purchase Krause Publications for $120 million, according to The Milwaukee Journal Sentinel newspaper. Krause Publications publishes "leisure-time" books and magazines, including publications for the antiques and collectibles market. Krause Publications is an employee-owned company located in Iola, " a village of about 1,200 population nestled in the beautiful rolling hills and woods of central Wisconsin."

F & W calls itself a leading publisher of special interest magazines and books for writers, artists, photographers, graphic designers, woodworkers and others. The company was established in 1913 and publishes Popular Woodworking and Writer's Digest magazines, among others.

F & W's Book Division offers more than 525 titles under six imprints. In addition to the core how-to books in art, writing, design and woodworking, it covers lifestyle subjects as diverse as home remodeling, songwriting, genealogy and wedding planning.

William F. Reilly, former head of Primedia, joined with a private investment firm to buy F & W earlier this year. Reilly had been president of Macmillan Publishing Company and went on to found K-III Communications in 1989. In 1997, K-III Communications Corporation changed its name to Primedia Inc., which later merged with About Inc., the publisher of the About.com Web sites.

In 1999, Reilly retired from his position as chairman and CEO of Primedia after 10 years at the helm. He had grown Primedia revenues to more than $1.5 billion through well-timed acquisitions and start-ups of consumer and business media products. The reason for the decision was "to take early retirement to pursue private investment opportunities," although the New York Times said Reilly was forced out by his majority investors, Kohlberg, Kravis, Roberts & Company.

The Times said Reilly is looking to woo the over-35 market usually ignored by youth-centric advertisers, and plans to stick to niche publications with his latest venture. http://www.jsonline.com/bym/news/jun02/55118.asp http://fwpublications.com