IPC Magazines Gains Independence

Today’s announcement that Reed Elsevier has sold IPC Magazines to Cinven, the venture capital group, means that the company will now operate as an independent publisher and will not be split up into separate divisions.

While Cinven actually raised the £860 million in cash, the publisher will be run by its existing management team which is headed by chief executive Mike Matthew. The transaction is expected to be completed on 19 January.

Matthew commented: “I am delighted that it has been possible for Reed Elsevier to conclude a deal with Cinven which keeps IPC together as a single business. It gives us added scope for additional investment in our business, and the opportunity to strengthen still further our position as the UK market leader in consumer magazines.”

Reed, which had been advised on the deal by SBC Warburg Dillon Read, will use the proceeds of the sale for the future development of, and acquisitions within, its core Scientific, Professional and Business Divisions.

IPC, which in 1996 reported pre-tax profits of £63m, currently holds a 23% share of the consumer magazine market, making it the largest single UK consumer publisher in the UK. Emap is its nearest rival with 13% while Redwood has 11%.

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