NEW YORK, NY--(Marketwire - January 31, 2011) - Hearst Corporation and Lagardère SCA (MMB.FR) today announced that Hearst has made a binding cash offer of EUR 651 million for Lagardère's international press and magazine business. This includes 102 titles in 15 countries (U.S., Russia & Ukraine, Italy, Spain, U.K., 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 leading global, upscale women's brand -- as well as 10 editions of ELLE DÉCOR, and ownership of Woman's Day, Car and Driver, Road & Track and Cycle World in the U.S.; Red in the U.K. 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 EUR 774 million revenue and EUR 49.6 million 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 U.S. and U.K.
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, Lagardère will initiate an information and consultation procedure with the relevant workers' councils.
Closing of the transaction is expected by Q3 2011.
About Hearst Corporation
Hearst Corporation (http://www.hearst.com) is one of the nation's largest diversified media companies. Its 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; more than 200 magazines around the world, including Good Housekeeping, Cosmopolitan and O, The Oprah Magazine; 29 television stations, which reach a combined 18% of U.S. viewers; ownership in leading cable networks, including Lifetime, A&E, History and ESPN; as well as business publishing, including a minority joint venture interest in Fitch Ratings; Internet and marketing services businesses, television production, newspaper features distribution and real estate.
Contact Information:
Media Contacts:
Hearst Corporation:
Debra Shriver
212-649-2461
dshriver@hearst.com
Paul Luthringer
212-649-2540
pluthringer@hearst.com