Primedia is being sold

[DLinson]

http://www.sema.org/Main/ArticleDeta...ontentID=57421

In the SEMA news E-mail I got today, it says that Primedia is being sold to Source Interlink. I hope they don't streemline the company and start cancelling some magazines, especially Popular Hotrodding and Street Rodder.

Have you heard any details Steve?

Dennis Linson

[trapin]

I know one guy they could streamline over there and it wouldn't break too many hearts either.

[TheMonkey]

This is a weird deal. Source Interlink is a pretty small company and has borrowed the entire purchase price from Citi to buy Primedia. Essentially Source just morphed into a levered Primedia magazine division, with no shareholder vote required from Source (?!?).

Same guy that managed all the magazine divisions will be head of new Source Interlink's magazines. Steve Parr.

Basically a sale from one Private Equity owner (KKR) to another (Yucaipa), so I would imagine that things will remain the same, but as with any new owner, they will prob evaluate whether or not each magazine cover is covering their nut or not. KKR is pretty saavy, I would think that they already cleaned up the assets before putting them up for sale.

[TonyL]

stuff always going on over there.
https://www.pro-touring.com/forum/sh...light=primedia

http://jalopnik.com/cars/news/questi...cut-235417.php

[Steve1968LS2]

;)

Some info in here...

SOURCE INTERLINK COMPANIES TO ACQUIRE
PRIMEDIA’S ENTHUSIAST MEDIA SEGMENT

- Transaction creates vertically-integrated media company with leading content and a powerful distribution and merchandising platform -

- Company expects transaction to be accretive to adjusted earnings per share exclusive of one time costs -

Source Interlink Companies, Inc. (NASDAQ: SORC), a leading provider of merchandising and fulfillment services for home entertainment products, is pleased to announce that it has signed a definitive stock purchase agreement to acquire PRIMEDIA Inc.’s (NYSE: PRM) Enthusiast Media division (EM) for approximately $1.2 billion. The all-cash transaction combines EM’s industry-leading magazine content portfolio, containing over 70 magazine titles and 90 Web sites, with Source Interlink’s premier magazine distribution and merchandising platform, creating a leading vertically integrated media, publishing, merchandising and distribution company.

To fund the acquisition, Source Interlink has secured a financing commitment from Citigroup Global Markets, Inc.

EM is one of the largest providers of print and digital media content to the enthusiast community, with more than 70 magazine titles, 90 Web sites, over 65 events, a television program, and 400 branded products. It is the #1 special interest magazine publisher in the U.S., and its portfolio of well-known niche magazine titles and content brands includes: Motor Trend magazine, Automobile magazine, Hot Rod magazine, Lowrider magazine, Soap Opera Digest and Soap Opera Weekly magazines, Power & Motoryacht magazine and, Surfer and Snowboarder magazines.

For fiscal year 2006, EM had revenues of $524.8 million. Source Interlink estimates that the combined companies generate approximately $2.4 billion in revenue and more than $180 million in EBITDA on an annualized basis. Source Interlink expects the transaction to be accretive to adjusted earnings per share exclusive of one time costs.

The transaction is expected to close mid-summer, and is subject to regulatory approvals and other customary closing conditions. Following the completion of the transaction, EM will operate as a division of Source Interlink and will be headed by Steve Parr, EM’s current president. He will report to Michael Duckworth, Chairman of Source Interlink.

Michael Duckworth commented, “Our review of strategic alternatives is complete and our direction is clear. Over the last several years Source has driven the consolidation of a fragmented and inefficient channel for the distribution and merchandising of home entertainment content at retail and the newsstand. This acquisition is a first step to leverage what we have built by transforming Source into a fully integrated media company with both print and digital content. EM’s industry-leading special interest magazine titles and consumer Web sites diversifies our earnings streams and accelerates our growth. Under the leadership of Steve Parr, EM has developed a strategy for growth that capitalizes on the changes taking place in the media environment. We welcome Steve and his team to Source and we look forward to building on the solid foundation they have created.”

“We are delighted with the end result of this process,” said Dean Nelson, CEO of PRIMEDIA. “We are able to emerge from this auction virtually debt free and completely focused on our Consumer Source business. At the same time, we believe that Source Interlink will be a terrific home for our Enthusiast Media Group and will continue to thrive under their ownership. We thank the EM team for their hard work and commitment and we wish Steve Parr and the entire team all the best.”


About Source Interlink Companies, Inc.

Source Interlink Companies is a leading marketing, merchandising and fulfillment company of entertainment products, including DVDs, music CDs, magazines, books and related items. The Company's fully integrated businesses include:

• Distribution and fulfillment of entertainment products to major retail chains throughout North America and directly to consumers of entertainment products ordered through the Internet

• Import and export of periodicals sold in more than 100 markets worldwide

• Coordination of product selection and placement of impulse items sold at checkout counters

• Processing and collection of rebate claims as well as management of sales data obtained at the point-of-purchase

• Design, manufacture and installation of wire fixtures and displays in major retail chains

• Licensing of children's and family-friendly home entertainment products
Source Interlink serves approximately 110,000 retail store locations throughout North America. Supply chain relationships include movie studios, record labels, magazine and newspaper publishers, confectionary companies and manufacturers of general merchandise. For more information, please visit the company's website at http://www.sourceinterlink.com.

About PRIMEDIA Inc.

PRIMEDIA Inc. is the parent company of Consumer Source Inc., the #1 publisher and distributor of free consumer guides in the U.S. with Apartment Guide, Auto Guide, and New Home Guide, distributing free consumer publications through its proprietary distribution network, DistribuTech, in more than 60,000 locations. Consumer Source owns and operates leading websites including ApartmentGuide.com, AutoGuide.com, NewHomeGuide.com; and America's largest online single unit rental property business, comprised of RentClicks.com, RentalHouses.com, HomeRentalAds.com, and Rentals.com.

[TheMonkey]

<< Duckworth commented, “Our review of strategic alternatives is complete and our direction is clear >>

[Black-Jacket]

hope they dont screw with gm high tech performance and super chevy

[Dayton]

Hopefully the new owners will make "Camaro Performers" a subscription mag instead of a newsstand special. I get tired of driving all over town every 2 months looking for the latest issue.