M&A Scorecard: November 2005
By Bill Mickey
Buyer: Endurance Business Media
Sale Price: Revenue Multiples: 1X
The deal behind the deal: Endurance Business Media subsidiary Homes and Land, LLC went on a shopping spree and expanded its presence in two new markets;Indiana and California. The real-estate guide publisher, which already prints 60 million magazines in 15,000 communities, picked up Indianapolis-based Executive Publications and Santa Cruz, California-based Pacific Publishing and Communications, Inc. for under $5 million each. Titles include Distinctive Homes and Living and Indianapolis Downtown Real Estate; and Coastal Homes of Santa Cruz County and Coastal Homes of Monterey County.
Our panel says: “Given what [Schmidt-Fellner] did with Cygnus, this is only the tip of the iceberg.”
“Their strategy makes perfect sense. But you have to question the viability of that print market.”
Buyer: Vance Publishing
Seller: Doane Agricultural Services
Sale Price: $5 mil. est.
Revenue Multiple: 1.5X
The deal behind the deal: Lincolnshire, Illinois-based Vance purchased Doane Agricultural Services, which includes a magazine, a daily live radio program and a mix of economic advisory products. Vance, which publishes b-to-b products in the salon, interiors, and food and agriculture markets will place the Doane assets in its Food360 division. Doane’s magazine, Ag Professional, will be absorbed into Vance’s Dealer & Applicator and the combined publication will keep the Ag Professional title with a boosted frequency of 12 times per year. Bill Newham, the Food360 division senior vice president, said in a statement that the advisory products and radio program, which is broadcast through 74 affiliates, will not be changed.
Our panel says: “It makes sense. But [the radio station and advisory services] might be something they’ll divest. Sometimes it’s easier to buy the whole package and sell off what you don’t want.”
Sale Price: Revenue Multiple: 1.5X
The deal behind the deal: Primedia added Equine.com to its stable of equine products, among them Equisearch.com, EQUUS, Horse & Rider, and Growing up with Horses.
Our panel says: “It bolsters their position in the market, gets them further entrenched and there’s probably some cross-selling opportunities.”
Buyer: Highline Media
Seller: Adams Business Media
Sale Price: $7 mil. est.
Revenue Multiple: 1.5X
The deal behind the deal: CEO Andrew Goodenough’s Highline Media makes its second M&A Scorecard appearance in a row with its purchase of Research and Futures from Adams Business Media. The magazines, covering the securities and futures markets respectively, will be part of Highline’s Financial Magazine division. Included in the sale are the related Web sites, subscription services and publishing rights to Buyside magazine.
Our panel says: “These titles have been kicked around a bit with a couple of owners. They probably weren’t core to what Adams does.”
Ziff Davis acquired the GameTab Web siteﾅAOL bought Weblogs, Inc.ﾅPennWell Corp. acquired Small Times magazineﾅBananaStock Limited was sold to Jupitermedia.
To include your M&A related news, please contact senior editor Bill Mickey at email@example.com .