Dan McCarthy’s Atlanta-based Network Communications Inc., which was purchased last January for an estimated $380 million by Citigroup Venture Capital Equity Partners, has purchased the regional Atlanta Home Improvement. The deal represents NCI’s first step into what president Adam Japko describes as the mass-market sector, which targets households spending $10,000 to $75,000 on improvement projects.
Japko declined to disclose terms of the deal except to say the magazine has had 20 percent revenue growth for the last three years.
The 75,000 circ monthly, which is distributed free, offers ideas for remodeling, decorating, gardening and home maintenance. But Japko says it was the magazine’s model that caught NCI’s eye. “We bought this one in Atlanta primarily because of the model,” says Japko. “It brings us into [the mass-market] space and we have not been there before in terms of home improvement. It gives us a whole other sector to build on beyond the affluent sector that we’ve been in.” By contrast, according to Japko, the affluent market spends $100,000 or more on home improvement projects.
Japko adds that growth for NCI going forward will come from launches and acquisitions. The Atlanta Home Improvement deal, however will figure heavily into that growth. “We believe we can replicate this kind of business in a number of different markets, so it’s a real springboard for us,” he says.
Network Communication’s real estate guides and home improvement titles reach 12 million readers in 500 markets across the country.