Cygnus Business Media CEO John French announced to employees today that the company is putting its Heavy Construction Group up for sale, Folio: has learned. Included in the deal will be seven print magazines, two websites and an event.
The Heavy Construction Group is one of three groups within the Construction division, which also includes the Residential Construction and Landscaping groups.
The auction is the next step in a process that French undertook when he joined as CEO in 2009 right after the company emerged from bankruptcy protection: bring the portfolio back into shape and sell it off, in pieces or in aggregate.
"When I first came in, I said I’m here to get this company out of bankruptcy, grow value and sell it because we’re owned by the banks," French tells Folio:.
In that sense, this deal resembles last year’s divestment of the agriculture group, which kicked off Cygnus’s sale process almost a year to the day. And, like last year, the company has retained Corporate Solutions to broker the auction.
French declined to offer revenue or pricing details, but says the group is profitable and doing a "very high" margin.
According to a source, revenues are in the $10 million range.
Digitally, the group has had 21 percent CAGR for the last five years, French says.