Seven Publishing Bags Delia’s Magazine Firm
Newly established publishing house, Seven Publishing, has announced the acquisition of New Crane, the magazine publishing company founded by Delia Smith and her husband Michael Wynn Jones, with interests including Sainsbury’s Magazine, Delia Smith’s book and magazine publishing business and a creative agency.
The move expands Seven’s portfolio of titles, which includes food title Delicious and gardening magazine Gardenlife. The latest move brings the company’s total number of titles to over 30, with staff members numbering 124, all of whom will be located in the New Crane site in London’s South Bank.
The addition of Sainsbury’s Magazine enhances Seven’s position in the food magazine marketplace, established by the success of Delicious, which launched in November 2003 and had a debut ABC of 91,333. Sainsbury’s Magazine has also seen an increase in circulation, rising by 1% year on year in the six months to June 2004.
Founded in 1993, New Crane has grown as both a consumer and contract publisher, with its own in-house creative, editorial, commercial and production teams. Amongst the company’s clients are BBC Books, WHSmith, Aga Rayburn, Bibendum Wines, Norwich City Football Club, Orient Express, Unilever and Sainsbury’s. New Crane also has responsibility for Delia Smith’s book design.
As part of the acquisition, Delia Smith has become a consultant for Seven Publishing and will continue in her existing role with Sainsbury’s Magazine.
The acquisition follows a similar deal by Seven to acquire Cottage Publishing in September 2004. The two companies were secured for a total of £13.6 million and, at the time of acquisition, the companies held in aggregate in excess of £5.4 million of cash on their balance sheets.
Commenting on the move, Seamus Geoghegan, managing director of Seven Publishing said: “The addition of New Crane and Cottage Publishing enables Seven to provide an even stronger offering to readers and advertisers. We are delighted to combine two of the UK’s strongest food magazines by bringing Sainsbury’s Magazine under the same roof as delicious. putting Seven Publishing at the forefront of the food magazine marketplace.”
As part of the funding of the acquisitions, Seven Publishing has raised £7 million of new equity funds with a significant element of these funds being provided by Guardian Media Group (GMG) and Caledonia Investments. This takes the GMG stake to 35.5% following the acquisition of New Crane Ltd.
The acquisitions of Cottage Publishing and New Crane are expected to contribute proforma Revenues in 2005 of approximately £17 million and Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) of approximately £2 million. Both acquisitions are expected to enhance Seven Publishing’s earnings per share in its first year of ownership.
Last year saw the Guardian Media Group acquire a 27% stake in Seven Publishing, a move which made it the largest single shareholder in the new business. At the time Seven was preparing to inject £4 million to expand its flagship food title, Delicious (see 27% Slice Of The Delicious Pie For GMG).
Seven Publishing: 020 7747 7016 www.7publishing.co.uk
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