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Future buys stable of five specialist magazines from Haymarket Media
Specialist media platform provider Future announced the proposed acquisition of five specialist consumer titles from Haymarket Media Group on Wednesday, including What Hi-Fi?, Stuff, FourFourTwo, Practical Caravan and Practical Motorhome.
The London-listed firm said consideration would total up to £14m, the majority of which was in the form of cash, with the balance in shares.
It said the titles generated revenue of £12m in the last financial year to June 2017.
The consideration shares would subject to lock-up restrictions for three months from the date of issue.
Future described the titles as "respected" explaining that they would diversify revenues, strengthen its position in audio visual, and expand Future into new verticals - sport and outdoor leisure.
The titles also presented organic growth opportunities by leveraging and expanding brands and content through Future's platform, the board explained.
What Hi-Fi? Would extend the company's existing brand leadership in consumer technology to lead in audio visual, while FourFourTwo would enter Future into the sport vertical during a World Cup year.
Practical Caravan and Practical Motorhome built a "strong position" in specialist subscription magazines for outdoor leisure, and Stuff extended its commitment to the men's lifestyle market, Future's board explained.
The acquisition was expected to be earnings enhancing in the first full year of ownership, driving growth in the company's operating profitability and cash generation.
Future said the transaction was expected to complete in early May following the TUPE consultation process with the relevant staff.
The acquisition of Stuff was also conditional on CMA approval.
"This acquisition is a further demonstration of our strategy to develop evergreen content that connects with communities and further diversifies our revenue streams," said Future CEO Zillah Byng-Thorne.
"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 strong track record of 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."