Stephen Adams (business)

Stephen Adams (born 1937) is an American businessman and private equity investor. His current holdings include Affinity Group, Inc., a national publishing, retail stores, and member-based direct marketing organization directed toward owners of recreational vehicles and Adams Outdoor Advertising, an operator of outdoor advertising structures in the Midwest, Southeast, and Mid-Atlantic regions of the United States. His previous holdings have included operators of television and radio stations, print publishers, cola bottlers and community banks.^[1]

Early life

Adams was born in 1937 and was raised in Minnesota. Adams received a bachelor's degree in 1959 from Yale University, where he was a member of Skull and Bones.^[2]:180 He received his MBA from the Stanford Graduate School of Business in 1962.

Professional career

As of the end of 2007, Adams served as chairman of the board of Affinity Group Inc., FreedomRoads and Affinity Bank. Adams is also chairman and the controlling shareholder of Adams Outdoor Advertising. Stephen Adams has been chairman of Affinity Group Inc., since its acquisition in December 1988 and chairman of Adams Outdoor Advertising since its founding in 1983.

Adams began his career in banking and soft drink bottling. Since the 1970s, Adams has served as chairman of privately owned banking, bottling, publishing, outdoor advertising, television and radio companies in which he holds a controlling ownership interest.

In 1982, Adams won a protracted fight to gain control of the Bank of Montana System.^[3][4] In 1984, Adams failed in a bid to take control of publicly traded Union Planters.^[5][6]

Adams Outdoor

Adams Outdoor was founded in 1983 with the acquisition of Central Outdoor Advertising, located in Michigan. Over the next five years, Adams pursued a rollup of billboard and other outdoor advertising assets into additional medium-sized markets, primarily through the acquisition of existing outdoor advertising businesses in selected midwest, southeast and mid-Atlantic states.^[7] Today the company is privately held, however in its final year of reporting public financials, 2000, the company had approximately $80 million of revenue. Since 2000, the company has increased its market position from the 6th largest outdoor advertising company in the US to the 4th largest behind Clear Channel Communications,Lamar Advertising Company, and CBS Outdoor Americas.

Television and radio investments

In 1992, Radio Group Corporation and Adams Radio of Charlotte, Inc., entities in which Stephen Adams was the chairman and controlling shareholder, consented to the appointment of receivers to effect a transfer of control of the radio operations of such entities as part of a consensual restructuring of the debt of such entities. In 1993, Adams Outdoor of Atlanta, Inc. (Adams Atlanta), a corporation controlled by Stephen Adams, entered into a consensual foreclosure agreement with its lenders. Adams Atlanta was acquired in 1988 in a leveraged transaction, and ownership was transferred to its secured lender in July 1993. In addition, in July 1993, a party whose claim was being disputed filed an involuntary bankruptcy petition against Adams Atlanta. The petition was withdrawn and dismissed three days after the filing.^[7][8][9]

Affinity Group Inc.

On December 23, 1988, the direct predecessor of Affinity Group Inc. (AGI), owned by Adams, acquired a company called American Bakeries Company for approximately $138 million .^[10] Adams was a noted private equity investor in the 1980s completing rollups of billboard assets to form Adams Outdoor Advertising and he also owns or has owned various banking, bottling, publishing as well as television and radio companies.^[11][12] At the time of the merger, the sole operating assets of American Bakeries Company were TL Enterprises, Inc. (Trailer Life magazine) and Camp Coast to Coast, Inc. These entities consisted of what is today the Good Sam Club, Coast to Coast, AGI’s subscription-based products and services business and AGI’s RV-related publications, with the exception of the Woodall’s titles.^[8][9]

From 1990 through 1997 AGI made a number of significant acquisitions that expanded AGI’s scale and presence. In 1990, AGI acquired Golf Card International, Inc. for approximately $18 million. Subsequently, in May 1994, AGI acquired Woodall Publishing Company, L.P. and Woodall World of Travel, L.P. (collectively Woodall’s) for approximately $11.5 million.

In 1995, AGI acquired San Francisco Thrift and Loan (founded in 1982) and the company’s headquarters were relocated to Ventura, California. In 1997 the bank was renamed Affinity Bank and in 1999, AGI transferred ownership to Affinity Bank Holdings, Inc. a separate entity controlled by Adams^[13]

In March 1997, as part of AGI’s $130.0 million offering of the holding company notes due 2007, AGI acquired Camping World, Inc. and Ehlert Publishing for approximately $123.0 million and $22.3 million, respectively.^[14][15]

On August 28, 2009, Affinity Bank was closed by the California Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC]) was named Receiver. Pacific Western Bank of San Diego, California took over all deposit accounts, excluding certain brokered deposits.^[16] The closure was a result of Affinity’s depleted capital reserves due to defaults on commercial mortgages and construction loans. Regulators estimate the cost of the Affinity Bank failure at $254 million.^[17]

Between September 14 and December 14, 2009, AGI sought and received ten extensions on bond payments due from creditors.^[18] On Dec 17, 2009 AGI received $70M from a private equity source ^[19][20]

Political affiliations

Adams has been actively involved in fundraising for Republican Party candidates. He reportedly contributed over $1 million of billboard advertising (through his Adams Outdoor Advertising business) to support George W. Bush's 2000 presidential campaign.^[21]

Philanthropy

Adams currently serves on the board of visitors for the Yale School of Music. The Adams Family Foundation, founded by Adams and his wife, Denise, has made grants to a variety of educational institutions including Yale University, Stanford University,^[22] Westmont College, the Lyme Academy College of Fine Arts and The Blake School. Adams gave a $100 million gift to the Yale School of Music, the largest single contribution in the school's 108-year history to that point.^[23]

Awards

Adams was selected to receive the Arbuckle Award from Stanford University's Graduate School of Business in 2006.^[24][25]

See also

• Affinity Group Inc.
• Camping World
• Adams Outdoor Advertising

References

External links

• Affinity Group (official website)
• Affinity Bank (official website)
• Adams Outdoor Adveritising (official website)
• Camping World (official website)
• Affinity Group Holding Inc Company History (FundingUniverse.com)

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