- Seven West Media has announced the sale of Pacific Magazines to Bauer Media for $40 million
- Pacific Magazines has an archive of well-known publications such as New Idea, Marie Claire, Family Circle, Men’sHealth, and more
- Much like the recent sale of Redwave and Prime Media merger, the company sees this as a way to pay down debt, improve its balance sheet and focus on digital growth
- Seven West and Bauer Media have also entered into commercial arrangements to mutually benefit both companies
- This includes Seven West receiving $6.6 million of advertising on Bauer Media assets over three years
- Seven West Media’s shares are up a healthy 11.7 cents, with shares trading at 43 cents each
Seven West Media has announced the sale of Pacific Magazines to Bauer Media for $40 million.
The proceeds of the sale will be used to pay down debt which will improve the company’s balance sheet flexibility and will enable it to focus on its content-led growth strategy.
SWM Managing Director and CEO James Warburton attribute Pacific Magazine as an integral part of its transformation.
“The team at Pacific have been at the forefront of our group’s 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,” James said.
Pacific Magazines has an archive of well-known publications such as New Idea, InStyle, Marie Claire, Family Circle, Girlfriend, Men’sHealth, and more.
The company has seen several changes since James was appointed CEO in August this year.
Last Friday, the company announced merging with Prime Media to extend the national reach and save the businesses $11 million in operating costs.
It also announced selling its Redwave radio business to Southern Cross for Media for $28 million.
Much like the sale of Pacific Magazines, these recent announcements are in the interest of a strengthened balance sheet, lower debt level and improved efficiency in content delivery.
Seven West Media and Bauer Media have also entered into commercial arrangements to mutually benefit both companies.
These include advertising spend commitments, the ongoing production of the Better Homes and Gardens television show, and sharing lifestyle content under a long-term agreement.
Additionally, SWM will receive $6.6 million of advertising on Bauer Media assets over three years.
Seven West Media’s shares are up a healthy 11.7 cents, with shares trading at 43 cents as at 4:10 pm AEDT.