IOLA, Wis. — Cincinnati's F&W Publications will buy employee-owned Krause Publications, the Wisconsin-based company said this week.

DEAL DETAILS

• Krause Publications will keep its name and location in Iola, Wis.     • The transaction will create two divisions. Roger Case of Krause will become president of the magazine division. Budge Wallis of F&W will be president of the book division. They will report to Stephen Kent, president of F&W.     • The deal will have no effect on employment or Krause's publications, Mr. Case said.     • The sale is expected to close in July.

        Krause will become a subsidiary of F&W Publications, which publishes Writer's Digest and other how-to magazines and books. The pairing will complement Krause's focus on collectibles and hobbies, the company said.

        Roger Case, president of Krause Publications, said Wednesday the sale will result in few changes, and he expects Krause's employment will increase over time due to growth opportunities. The transaction will create a publishing firm with about $200 million in annual revenues, about double the size of the individual companies, he said.

        F&W will purchase Krause's Employee Stock Ownership Plan, which owns 100 percent of the company's stock. Terms were not disclosed.

        Chet Krause, raised on a farm in Waupaca County, Wis., was a carpenter with many hobbies. In 1952, he started a publication for collectors to buy and sell coins through the mail.

        Over time, Krause diversified into other specialty interests, including antique cars, sports cards, comics, music, firearms, toys and arts and crafts. It now calls itself the world's largest publisher of leisure-time magazines and books. It publishes 46 periodicals and 750 reference and how-to books, including the weekly Sports Collector's Digest, according to its Web site.

        F&W Publications also has seen rapid growth after diversifying into how-to publications. Founded in 1913, F&W was family-owned until 1999, when the founder's grandson, Richard Rosenthal, sold to Citicorp Venture Capital Ltd., an arm of the financial conglomerate Citibank.

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