The magazine publishing business known as Bauer Media will need a new name under the ownership of private equity and investment group Mercury Capital.
Brendon Hill, the CEO of Australia's biggest magazine group and the holder of the best women's audience, says it's business as usual with the deal due to close in July.
Commercial terms of the sale have not been released. The German family company Bauer paid $525 million in 2012 for what was then ACP. Some reports put the latest sale price as low as $50 million.
The sale includes Pacific Magazines, recently sold to Bauer for $40 million by Seven West Media. That deal created a multi-platform publishing portfolio of 43 Australian magazine brands including The Australian Women’s Weekly, New Idea, Better Homes & Gardens and Woman’s Day.
That was heralded as a stronger business with a "compelling" digital reach.
“Bauer, an international publishing powerhouse, have been really good owners for us over the last eight years," Hill told AdNews.
"It was a really hard decision for them, but they need to concentrate on Europe. They've got to concentrate on the radio, publishing, comparison platform businesses and their digital marketing businesses. They’ve been acquiring a lot recently."
One of the key decisions now for the Australian business is a new name for the company as part of setting a strategy, which will be tilted toward a digital play.
“It’s business as usual for now but in two to three months time, they (Mercury) want to spend some time with us, get to know us, and get to know the business more, take the time to work together as a team," he says.
"There is a great opportunity to rebrand, have a new name and a new voice. We always thought Pacific and Bauer should come together as a new company and what a great opportunity to do that now."
“The subscription growth we’ve had recently has been outstanding and circulation sales have been really, really positive through this crisis. There's still demand for really good content."
Hill says the advertising market has been incredibly difficult but Bauer is well placed when the market comes back.
“The last three to four weeks has been a lot better than the previous eight that's for sure," he says.
“The team is responding to a lot of briefs and they're really proactive in the market and they're working really, really hard.
“We're such a big powerhouse in reaching women now. Hopefully we're going to get on some more of those briefs with the portfolio we have. And then some of the digital as well.
"We're really positive about the future but very COVID-19 dependent."
Digital will play a big role in strategy.
“I'm really hopeful about our digital strategy, progressing and bringing Pacific's digital products together with ours," Hill says.
“It’s a great opportunity to springboard off that huge reach. What new products can we bring to market and what new services can we launch and what new utility can we bring to our audiences?
“I think that is a really key part of our strategy moving forward."
A selection of titles are currently on hold due to the coronavirus crisis, including NW and OK! due to the downturn in travel. The titles rely heavily on airports.
Other titles on pause: Harper's Bazaar, Elle, Instyle, Men’s Health, Women’s Health, Good Health.
Hill last month announced a new publishing leadership structure:
Shane Sutton - Group publisher of homes
Fiona Connolly - Group publisher across weeklies
Susie Loxton has joined us and will head up the Luxury Group
Nicole Byers’ role has been extended and will now oversee Australian Women’s Weekly, Country Style and Better Homes & Gardens
Digital brand and operations remained the same:
Fiona Baker – Digital Director Entertainment and Parenting
Lorna Gray- Digital Director Beauty, Luxury and Health
Amber Manto – Digital Director, Homes and FoodD
Dean Burge - Head of Product/Technology
Neil Donnelly - Head of Digital Ad Ops
Tessa Rex - Director Video & Audio
Annabel Hodges - Director Audiences
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