Future plc, the global platform for specialist media, today announces the proposed acquisition of five specialist consumer titles from Haymarket Media Group for up to £14m. The five titles are, What Hi-Fi?, FourFourTwo, Stuff, Practical Caravan and Practical Motorhome.
The intended acquisition of popular brand What Hi-Fi? provides an entry into the complementary audio visual market, whilst Stuff complements Future’s existing technology brands. The acquisition of Stuff is conditional on Competition and Markets Authority approval. These brands will present Future with the opportunity to continue its strategy of organic growth in line with its content monetisation strategy.
The proposed acquisition will give Future a position in new specialist verticals. FourFourTwo will give Future access to the football audience during World Cup year, whilst Practical Caravan and Practical Motorhome provide a strong subscriptions proposition in the outdoor leisure market.Future predicts the acquisition will be earnings enhancing, driving growth in operating profitability and cash generation.
Zillah Byng-Thorne, CEO of Future, said:
“This acquisition is a further demonstration of our strategy to develop evergreen content that connects with communities and further diversifies our revenue streams.
“These titles are well established brands with strong market positions that expand and enhance our presence in existing verticals and extend our reach into new communities.
“We have a track record in integrating and leveraging acquisitions and we are confident that this deal will be earnings enhancing and drive further growth in operating profitability and cash generation.”
Kevin Costello, CEO of Haymarket, said:
“These world-class brands engage, inform and entertain millions of passionate enthusiasts. They – and their teams – have been part of the Haymarket story for many years. But as our strategic focus has evolved it’s become clear that they needed a new home where they can thrive and achieve their real potential. I’m confident Future is that home.
“Haymarket’s growth plan is increasingly focused around several clear investment themes. Firstly, building out our peerless position in consumer motoring media, to develop a strong ecommerce offer for the millions of new and used car buyers loyal to our iconic brands What Car?, Autocar and Pistonheads.
“And secondly, driving growth across our UK and international B2B portfolio – through innovative paid content, live and digital transactional models – as well as developing our client-facing content marketing agency. I’m pleased to say that we’re seeing growing momentum in all these areas.”
For further information, please refer to today’s RNS.