Bauer Media exits Australia and New Zealand
KWM has advised on Mercury Capital’s acquisition of all Bauer Media titles in Australia and New Zealand.
Firms: King & Wood Mallesons (Mercury Capital).
Deal: King & Wood Mallesons (KWM) has advised Mercury Capital (Mercury), a Sydney-based private equity firm that invests in Australia and New Zealand, on a deal to buy Bauer’s Australian and New Zealand business.
Area: M&A, media and telecommunications.
Key players: The KWM team leading the transaction consisted of partner Jason Watts, senior associate Shabarika Ajitkumar and solicitor Georgia Feltis from the M&A team.
Senior associate Greg Protektor assisted from the tax team whilst NZ firm Simpson Grierson advised Mercury on New Zealand matters.
Deal significance: Mercury Capital will acquire all of Bauer Media Australia’s print and digital assets, which cover women’s entertainment and lifestyle; fashion, beauty and health; homes; food; motoring and trader lifestyle categories.
The deal includes the Pacific Magazines assets which Bauer recently acquired from Seven West Media for $40 million.
“With new ownership and our bolstered portfolio, we have unparalleled opportunities to connect with more Australians than ever before and continue our strategy of digital growth and innovation,” Bauer Media CEO in Australia and New Zealand Brendon Hill said.
Veit Dengler, Bauer Media COO said that Bauer Media remains committed to magazine publishing.
“This decision supports our strategy to invest in our [market-leading] brands where we believe we are best placed to do so,” he said.
Under Mercury Capital’s ownership, the company will be rebranded, however its new name is not yet clear.
The sale marks the end of a decade for Bauer in Australia.
The German media company bought what was then ACP Magazines from Nine Entertainment Co, publisher of The Australian Financial Review, in 2012.
It paid $525 million for the business, which was generating about $80 million earnings at the time, and rebranded it as Bauer.
Mr Watts said they were delighted to have advised Mercury on its significant investment into Australian print and digital media and look forward to seeing the business evolve under the management of the highly respected Mercury team.