International special-interest consumer magazine group, Future Publishing, has announced the acquisition of 38 magazine titles from rival publisher Highbury House Communications, for a cash consideration of £30.5 million.
The titles purchased include, Fast Cars, Fast Bikes, DJ, DVD Review, the What Video group of magazines and Highbury’s puzzle offerings. The deal also includes Highbury’s US division, which publishes five magazines.
Earlier in the month, Future dropped its proposed bid for Highbury House following an announcement by the Office of Fair Trading (OFT) that the deal would be referred to the Competition Commission before being allowed to go ahead (see Future Drops Highbury Merger After OFT Referral).
The merger would have created the UK’s third-largest consumer magazine group, overtaking the BBC’s magazine division and thought to be worth £96.5 million (see Highbury Confirms Future Takeover Bid).
Commenting on the acquisition of the Highbury titles, Greg Ingham, chief executive of Future said: “These are classic special-interest magazines, which will be great additions to the Future portfolio. I am delighted that we have managed to reach an agreement with the Highbury Board to secure a positive outcome for both businesses.”
Ingham continued: “This deal has several of the attractions of the larger one with Highbury from which we withdrew earlier this month. We have built up considerable knowledge of Highbury’s portfolio over the past few months and thus have been able to move swiftly.”
The proposed sale is subject to shareholder approval from both groups, hoped to be gained by the 30 May, with a view to completion by the end of May or in early June this year.
Highbury House said that it was “shocked” and “disappointed” by the OFT’s decision to refer Future’s take-over bid to the Competition Commission, resulting in the automatic lapse of the offer.
Simon Neathercoat, non-executive chairman of Highbury said: “In the short period following the OFT’s announcement, the Board has sought to move quickly to preserve as much value as possible for Highbury’s stakeholders.”
He added: “This significant disposal will enable the Group to reduce its indebtedness substantially and provide new operational focus.”
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