Australia’s largest magazine publisher acquired by $2.5bn German giant Bauer

ACP Magazines, which publishes around 80 titles across Australia and New Zealand, has been acquired by Bauer Media Group for an undisclosed amount, rumoured to be around $500 million. 

That figure would be around six times ACP’s forecast 2012-13 EBITDA of $80 million, according to the Australian Financial Review.

The money is expected to go to paying off billions of debts at CVC Capital Partners, which owns ACP parent company Nine Entertainment Co (NEC).

Nine Entertainment chief executive David Gyngell said “the sale provides NEC with an attractive all-cash valuation”.

The 100% sale, which is expected to complete within four to eight weeks, represents a transfer from private equity ownership to a family-owned company.

The notoriously publicity-shy Bauer family have shown their significant commitment to magazines as the publisher of more than 400 titles worldwide.

Publisher and owner Yvonne Bauer said: “ACP fits our strategy of developing the Bauer Media Group globally. We believe in print, and ACP’s strong brands in Australia and New Zealand are perfect platforms to expand into digital areas.”

Bauer is no stranger to the ACP stable. In 2008, Bauer bought UK magazine publisher Emap, a year after ACP acquired the Australian business of Emap, and both publish newsstand titles such as FHM, Grazia and Empire.

ACP chief executive Matthew Stanton said: “Being part of the Bauer Media Group provides ACP with a positive and clear future, under an owner who is focussed on magazines and who will support investment and growth in our business. This outcome provides a commitment for the long term for both our brands and our people.”

The deal is not expected to affect the magazine printing contracts with PMP in Australia and Blue Star division Webstar in New Zealand.

Richard Allely, chief executive of PMP, which renewed its printing deal with ACP in May, told ProPrint: “This is good news for PMP as our contract with ACP would continue for the full term with the new owners.”

ACP’s New Zealand stable is produced by Webstar, which established a web offset plant outside Auckland in June 2011 to cater for the major client.

According to ACP, it sells 86 million copies of its magazines every year in Australia and 11 million in New Zealand.   

Bauer Media Group already has around 8,700 employees in 15 countries and turns over about €2 billion ($2.5 billion) annually.

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