News from AAP

Nine Entertainment sells ACP magazines to German group

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Nine Entertainment has sold its Australian Consolidated Press (ACP) magazines to German publishing giant Bauer Media Group.

Nine Entertainment Company (NEC), on Tuesday confirmed that it had reached an agreement to sell 100 per cent of ACP Magazines, which includes its flagship Women’s Weekly, to Bauer.

“The decision to sell the magazine business is not one we have made lightly,” Nine chief executive David Gyngell said in a statement.

“On balance however, the sale provides NEC with an attractive all cash valuation and ACP with the benefits of being part of a global publisher organisation.

“This sale will also allow us to focus on our core television and growing digital and events businesses.”

The sale is expected to be completed in the next four to eight weeks.

Bauer publisher and owner Yvonne Bauer said ACP fitted with its strategy of developing globally and that ACP’s strong brands in Australia and New Zealand were perfect platforms to expand into digital areas.

Both parties have agreed to keep the purchase price confidential but media reports have suggested the deal could be worth about $500 million.

ACP’s stable of titles includes the mass selling Australian Women’s Weekly, Cleo and TV Week.

ACP publishes about 85 titles, which sell a total of about 90 million copies a year, including biggest-selling monthly The Australian Women’s Weekly and biggest-selling weekly Woman’s Day.

Others titles include Dolly, Cleo, Zoo Weekly, Madison, People, Picture, Harper’s Bazaar, Good Food, Australian Geographic, Grazia and Rolling Stone.

Bauer, which is based in Hamburg and operates in 15 countries, publishes dozens of titles including music title Kerrang! and UK women’s weekly That’s Life.

Speculation about the sale has been mounting in recent months as Nine and its owner, private equity group CVC Asia Pacific, struggle with massive debts.

Sydney’s Channel Nine, which is owned by Nine Entertainment, in its evening news bulletin said funds from the sale would go towards paying down CVC’s debt.

CVC’s $2.8 billion of senior debt needs to be either repaid or refinanced by February 2013.

The sale also requires Foreign Investment Review Board approval.

The Packer family’s link to ACP Magazines, once a key part of its formidable business empire, was cut in 2007 when James Packer sold Nine to CVC.