Primedia to Sell Modern Bride Group to Conde Nast
Posted on January 18, 2002Primedia Inc., a targeted media company, announced that it has entered into adefinitive agreement to sell its Modern Bride Group for total cash consideration of $52 million to Conde Nast Publications. The sale includes the Modern Bride publication which has a circulation over 400,000. The closing will take place following standard U.S. regulatory approval and the transaction is expected to close in the first quarter of 2002.
Primedia has been struggling and had a very difficult year in 2001. In 2001 Primedia had several rounds of layoffs (including cutting 60% of the staff at About.com), announced a hiring and salary freeze and saw its stock plummet into the $2 per share range. The company had previously announced it would be making some sales to reduce its large debt. Primedia stated that its sale of the Modern Bride Group is a part of its ongoing plan to sell non-core assets, reduce debt and continue to focus the company around those operations which have the highest potential to be integrated multi-platform properties with strong endemic advertising support.
Tom Rogers, Chairman and CEO of Primedia, said: "We are extremely pleased to be executing this sale on very favorable terms to Primedia in this market environment. Modern Bride is a great publication, but one which has shown few opportunities for synergy with Primedia's growth strategy. As a company, we continue to make significant progress on our strategic plan to divest non-core assets and use the proceeds to strengthen and deleverage our balance sheet."
Primedia announced at the time of its emap usa acquisition in July 2001 that it had targeted to sell $250 million of non-core assets. Primedia recently completed sales of Bacon's Information and other assets for a total of $105 million. Including the Modern Bride Group, the company has addressed over $155 million in non-core asset sales.