F+W Media announced today it acquired New Track Media, an enthusiast publisher in the crafts, woodworking and astronomy markets. The markets mostly match up with F+W‘s existing verticals, as does New Track’s e-commerce initiatives.
Terms of the deal were not released, but in all, it includes 8 e-commerce storefronts, 3 consumer catalog brands, 13 magazines, 45 special interest publications, 37 consumer events, 3 affinity clubs and 2 retail shops.
New Track, which employs about 300 people, launched in 2006 as a portfolio company backed by Boston Ventures and led by Stephen Kent, who previously served as the CEO of F+W.
As a result of the deal, Kent, along with New Track Media CFO Mark Arnett, will be leaving the company.
The sale was done privately with F+W, but one investment banker with knowledge of the deal says New Track had been on the block at least since last summer.
He described it as a "long, drawn-out process" and that F+W was the buyer of "last resort," likely securing very attractive terms.
“The New Track strategy closely mirrors that of F+W Media. From a two-dimensional publisher, to a multi-channel content and commerce company,” says F+W CEO David Nussbaum in a statement. “The team has had good success building their digital media and direct-to-consumer e-commerce offerings; we’ll immediately focus on taking those businesses to the next level.”
By the end of 2015, F+W says it will collect more than 60 percent of its revenues from digital, e-commerce and events—with the rest coming from print.
According to F+W, e-commerce revenues are now in the "tens of millions," with 20 million orders annually.
Likewise, following this deal, 60 percent of F+W’s revenue will come from the arts and crafts vertical.
There are no current plans to shut down any brands following the deal, Nussbaum tells Folio:.