Seven West Media has agreed to sell Pacific Magazines to Bauer Media for $40 million.
The deal, which is expected to be completed by the end of the calendar year, remains subject to approval by the Australian Competition and Consumer Commission (ACCC).
Seven will use proceeds of the sale to pay down debt, improve its balance sheet flexibility and simplifying the organisation to focus on its content led growth strategy.
“The sale of Pacific Magazines is another major initiative aligned with our strategy to improve balance sheet flexibility and simplify the operating model to enable greater focus on growth initiatives,” says Seven CEO and MD James Warburton.
“The team at Pacific have been at the forefront of our groups transformation and have done a tremendous job at repositioning their business, but there can be no doubt that there is a greater future within a larger scaled magazine group.”
Seven and Bauer have also entered into commercial arrangements to mutually benefit both parties, including advertising spend commitments, the ongoing production of the Better Homes and Gardens TV show, and sharing lifestyle content under a long-term agreement.
In addition, SWM will receive $6.6 million of advertising on Bauer Media assets over three years.
The deal would give Bauer a dominance over magazines in Australia, combining more than 50 titles under one roof including The Australian Women's Weekly, Gourmet Traveller, New Idea and Better Homes & Gardens.
“We are delighted to be able to combine our talent and resources with one of our most admired and respected industry peers,” says Bauer Media Australia CEO Brendon Hill.
“More than ever, scale and superior content is emerging as the differentiator of success in publishing. This transaction will bring the Bauer and Pacific teams greater opportunities to innovate, create and collaborate.”
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