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Future Buys Five Titles From Haymarket Media For GBP14 Million (ALLISS)

21st Mar 2018 10:34

LONDON (Alliance News) - Magazine publisher Future PLC said Wednesday it proposed to acquire five specialist consumer magazine titles from Haymarket Media Group for up to GBP14.0 million.

Future will buy the titles - What Hi-Fi?, Stuff, FourFourTwo, Practical Caravan and Practical Motorhome - using a majority of cash with the remainder paid through shares. The consideration shares have a lock-up restriction for three months from the date of issue. No further financial details were provided.

For the year ended June 2017, the five titles generated GBP12 million in revenue.

For the year ended September 2017, Future generated GBP200,000 in pretax profit on revenue of GBP84.4 million.

"This acquisition is a further demonstration of our strategy to develop evergreen content that connects with communities and further diversifies our revenue streams," Future Chief Executive Officer Zillah Byng-Thorne said.

"These titles are well established brands with strong market positions that expand and enhance our presence in existing verticals and extend our reach into new communities," Byng-Thorne added.

"We have a strong track record of integrating and leveraging acquisitions and we are confident that this deal will be earnings enhancing and drive further growth in operating profitability and cash generation", Byng-Thorne concluded.

Future believes the acquisition will be earnings enhavcing from the first full year of ownership. The acquisition of Stuff magazine, however, is subject to Competition & Market Authority approval.

Shares in Future were 4.5% higher at 370.00 pence on Wednesday.


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