Hearst to Acquire Lagardere's Magazine Business
This includes 102 titles in 15 countries (US, Russia & Ukraine, Italy, Spain, UK, China, Japan, Netherlands, Czech Republic, Hong Kong, Mexico, Taiwan, Canada and Germany) as well as extensive digital operations, with 50 websites and numerous mobile and tablet applications.
The transaction includes publishing rights to ELLE (in the 15 countries mentioned above) - a womenâ€™s brand- as well as 10 editions of ELLE DECOR, and ownership of Womanâ€™s Day, Car and Driver, Road & Track and Cycle World in the US; Red in the UK and Holland; and significant monthly and weekly titles in many major markets.
The companies have extended their exclusive negotiations agreement, which began on December 31, 2010. The assets being acquired by Hearst represented E774 m revenue and E49.6m EBIT in 2010, before unconsolidated joint venture interests and the deduction of minority interests.
Along with expected improved results in 2011 and beyond, Hearst anticipates significant synergies with its existing magazine business, particularly in the US and UK.
This binding offer is subject to customary antitrust/governmental clearances and approvals. In compliance with regulatory requirements in some jurisdictions and prior to signing transaction documentation, Lagardere will initiate an information and consultation procedure with the relevant workersâ€™ councils.
Hearst's major interests include ownership of 15 daily and 38 weekly newspapers, including the Houston Chronicle, San Francisco Chronicle, San Antonio Express-News and Albany Times Union.
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