M&A Scorecard – June 2006
Seller: O’Grady Meyers
Sale Price: $10 mill. est.
Revenue Multiple: 2X
The deal behind the deal: Meredith
makes a strategic play by purchasing interactive marketing services
firm O’Grady Meyers, which specializes in online customer relationship
marketing, particularly in the food, packaged goods and healthcare
categories. The firm will be aligned in Meredith’s Integrated Marketing
division as a "self-contained entity."
Jack Griffin, Meredith Publishing Group president, said in a statement
that he was interested in O’Grady’s interactive capabilities and
combining it with Meredith’s "traditional integrated marketing
capabilities" which are supported by the company’s 85 million-name
database. O’Grady’s 40 employees will join Meredith Integrated
Marketing’s 80-person team that already works on projects for 30
Our panel says: "They’re making sure they don’t lose advertising clients to the online world without a good fight."
"There’s decent client relevance between the two, but not so much overlap that it represents a conflict of interest."
Buyer: Hanley Wood
Seller: Alexander & Edwards
Sale Price: $5 mill. est.
Revenue Multiple: 1X
The deal behind the deal: Hanley
Wood acquired the assets of privately-held, San Francisco-based housing
finance publisher Alexander & Edwards Publishing Inc. Included in
the deal were two magazines, 13,000 circulation Affordable Housing Finance and 28,000 circulation Apartment Finance Today,
and their associated conferences, each attracting between 200 and 300
attendees and exhibitors. New York-based AdMedia Partners represented
Alexander & Edwards in the deal.
Peter Goldstone, president of Hanley Wood magazines, called the
acquisition "critical" and noted that the deal will expand HW’s
multifamily portfolio into the financial and affordable housing
markets. Founder and sole owner Andre Shashaty will join Hanley Wood as
editor-in-chief of both titles and chairman of the conferences.
Our panel says: "They’re building further on their franchise, it is more of a tuck-in, it fits nicely with what they already have."
"Hanley Wood wanted to move further into the affordable housing category. This puts them deeper into that market."
Buyer: Access Intelligence
Seller: King Publishing
Sale Price: Revenue Multiple: 1X
The deal behind the deal: Access
Intelligence, the $50 million Veronis Suhler Stevenson portfolio
company covering the aviation, chemical and telecommunications markets,
among others, purchased two publications, The Energy Daily and Defense Today,
and one weekly newsletter, Space & Missile Report, from 33-year-old
King Publishing Group. Gaithersburg, Maryland-based W.B. Grimes &
Co. represented King in the deal.
According to a statement, Energy Daily
will become the flagship of AI’s energy group. Llewellyn King, founder
and CEO of King Publishing, will continue in a consulting role
associated with this title. Meanwhile, Defense Today will be folded into existing AI title Defense Daily.
Our panel says:
"This allows Access more clout in the marketplace. They’re buying a
strong defense publication with lots of site license subscriptions. "
"This is the more traditional-style newsletter publisher where content
is king. They’re not just reading the wire and doing overviews."
Buyer: Canon Communications
Sale Price: N/A
The deal behind the deal: One
month after announcing the acquisition of auto enthusiast publisher
DRIVE! Media, Apprise CEO Charlie McCurdy put his b-to-b hat on and
bought eight events and one related magazine from Reed Business
Information’s industrial and manufacturing portfolio. The acquisition
will be aligned under Apprise’s Canon Communications, which already
produces several events for advanced manufacturing on both coasts. New
York-based Jordan, Edmiston Group facilitated the deal.
Our panel says: "They bought it for the shows. That’s the hot button with Apprise, they love the trade shows."
"It’s part of a larger package offering. He’s buying a piece of it. The
trade shows were more attractive to Canon than the total package."
Buying? Selling? Know someone who is? Submit M&A related tips and news to senior editor Bill Mickey at firstname.lastname@example.org.