Seven West Media has announced it has signed a binding agreement to sell Pacific Magazines to Bauer Media for a cash consideration of $40 million.
The deal includes a further $6.6 million of advertising on Bauer Media assets over three years.
Pacific Magazines includes titles including Better Homes and Gardens, New Idea, Who, Men’s Health, Women’s Health, Famous and Marie Claire.
SWM and Bauer Media have also entered into commercial arrangements to mutually benefit both parties, including advertising spend commitments, the ongoing production of Better Homes and Gardens television programme, and sharing lifestyle content under a long-term agreement.
It comes after Seven West Media announced a merger with Prime Television and divesting of WA radio network Redwave.
James Warburton, Managing Director and CEO of SWM said, “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. 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.”
The sale is expected to complete by the end of the calendar year, subject to ACCC approval.