Hearst Corporation Completes U.S. Portion of Lagardere Acquisition
(Press Release) NEW YORK, NY, May 31, 2011—Hearst Corporation today announced it has completed the U.S. portion and the majority of its overall transaction with Lagardère SCA to acquire the company's nearly 100 titles in 14 countries outside of France, including the U.S., as well as extensive digital operations—some 50 websites and numerous mobile and tablet applications. The transaction includes the magazines operated by Hachette Filipacchi Media U.S. and Lagardère's magazine brands in Italy, Spain, Japan, Netherlands, Hong Kong, Mexico, Taiwan, Canada and Germany. The transaction is expected to be completed shortly in Russia, Ukraine and the U.K., followed by China later in the year, after all necessary regulatory approvals have been obtained. The total purchase price is approximately EUR 640 million.
In the U.S., the acquisition includes publishing rights in perpetuity to global media superbrands ELLE and ELLE DÉCOR, and ownership of Woman's Day and its special interest publications, as well as Car and Driver and Road & Track. Hearst will immediately begin integrating these titles into its Magazines Group. Internationally, Hearst will gain publishing rights to 13 editions of ELLE and eight editions of ELLE DÉCOR, as well as ownership of myriad other popular magazine brands around the world. Hearst's new portfolio of magazines will contain more than 300 titles, bolstering its presence as a leading U.S. and global magazine publisher. The Company's ability to grow further will be enhanced by augmenting strong and profitable positions in complementary publishing segments including women's (the most dynamic and structurally growing magazine segment), men's, shelter, and categories that are new to Hearst including celebrity, TV guides and automotive.
"Today's news represents a rare opportunity to advance Hearst Corporation's position as a leading U.S. media company and significantly expand our presence domestically, internationally and in major emerging markets," said Frank A. Bennack, Jr., CEO of Hearst Corporation. "Above all, the deal underscores our commitment and belief in magazines and the brands and content they represent. Magazines continue to connect with their audiences and remain the natural partner for advertisers who want to reach engaged and receptive consumers. Lagardère and Hachette have done a superb job building these titles into real powerhouses that touch readers' lives in print and on all platforms. We see a great future of success for them here and on behalf of all of us at Hearst, I wish to welcome our new colleagues."
David Carey, president, Hearst Magazines, said, "This acquisition makes tremendous sense for Hearst because it allows us to further solidify our position in the fashion and beauty, shelter, and men's categories in the U.S. and dramatically grow our international footprint. Much like digital marketing service company iCrossing was a transformational acquisition, this is as well -- allowing us to offer our advertising partners a more complete service, not only in print but also through the many digital initiatives that both Hearst and Hachette have been developing in recent years. I look forward to meeting our new employees in the coming days and weeks."
Duncan Edwards, president and CEO, Hearst Magazines International, said, "We've always been interested in expanding our international publishing holdings and this portfolio of world-class brands provides an exceptional opportunity for us to add substantially to our existing global network of top magazines. We have long admired the editorial and publishing expertise of Lagardère around the world and we are looking forward to working with our new colleagues to build on this excellent foundation."
About Hearst Magazines
Hearst Magazines is a unit of Hearst Corporation, one of the nation's largest diversified communications companies. Once it completes its acquisition of Lagardère SCA's nearly 100 titles in 14 countries outside of France, Hearst Magazines will publish more than 300 editions around the world, including 20 U.S. titles. Hearst Magazines is a leading publisher of monthly magazines in the U.S. in terms of total circulation and reaches 88 million adults (Spring 2011 MRI).
Hearst Magazines Digital Media, dedicated to creating and implementing Hearst Magazines' digital strategy, has more than 28 websites and 10 mobile sites for brands such as Cosmopolitan, ELLE, ELLE DÉCOR, Esquire, Good Housekeeping, Marie Claire, Popular Mechanics and Seventeen, as well as digital-only sites such as Delish.com, a food site in partnership with MSN; TheDailyGreen.com; MisQuinceMag.com; and RealBeauty.com. Hearst Magazines has published more than 85 applications and digital editions for the iPad, iPhone and iPod Touch, as well as the Droid platform. In addition, the company includes iCrossing, a global digital marketing agency.