Primedia To Acquire Emap USA
Posted on July 3, 2001
Primedia Inc. announced it has agreed to acquire Emap USA (formerly known as Petersen Publishing) from EMAP plc, forming the second largest magazine company in the U.S. Emap USA has more than 60 consumer titles reaching over 75 million enthusiasts through a combination of magazines, network and cable television shows, websites, and live consumer events. Primedia will pay $515 million for Emap USA. The acquisition does not include the U.S. edition of FHM.
Among its well-known titles are Motor Trend, Hot Rod, Teen, Surfer and Stereophile. Some of the properties complement many existing Primedia products in key niche markets including automotive, teen, outdoor, active sports and consumer electronics. AdAge.com has reported that Primedia may also sell some of these newly acquired titles.
Tom Rogers, Chairman & CEO of Primedia, stated: ``While the word synergy is often overused, this could not be a more synergistic transaction for Primedia. Beyond providing great scale in catapulting Primedia to the number two spot in the magazine industry in revenues and single copy sales, it further cements our position as the number one producer of magazine editorial and advertising pages each month. Moreover, the Emap USA magazine properties strengthen Primedia's unique mix of category specific endemic advertising (with its far more stable characteristics than general brand advertising), as well as circulation revenue which is an increasingly important component of the Company's financial model.''
Primedia stated that the acquisition of the Emap USA will provided the company with numerous benefits and focused on the strength Emap USA would add to its Automobile and Teen titles. Primedia hopes Motor Trend will strengthen its Automotible titles and Teen magazine will enhance its reach in the teen market.