German firm to ink ACP buyout

Jonathon Moran and Phil Jacob
The Daily Telegraph
August 03, 2012

AUSTRALIAN magazine group ACP Magazines – publisher of the Australian Women’s Weekly, Cleo and Woman’s Day – could change hands within days.

Industry insiders yesterday suggested an announcement could come as soon as today.

It is understood ACP executives have met with a number of potential buyers, including German-based conglomerate Bauer Media Group.

There has been industry speculation for months about potential buyers, with Kerry Stokes’ Seven Media, Telstra and WIN boss Bruce Gordon also believed interested.

An ACP source said last night: “Talks are at an advanced stage. It is happening.”

ACP is the publishing division of Nine Entertainment Group, which was bought by CVC Asia Pacific in 2008.

First founded in 1936 by the late Frank Packer under the banner of Consolidated Press, the company has grown to more than 85 magazine titles selling in excess of 100 million copies each year.

The late Kerry Packer took over where his father left off, with grandson James also moving into the business.

Bauer is one of the largest magazine publishers in the world, with titles including In Touch, and Kerrang, and an annual turnover of €2.12 billion. Insiders said Bauer was shaping up as the frontrunner and analysts believe it could be a good move for CVC to reduce its crippling debt.

But last night, publishing veteran Ita Buttrose, who was founding editor of Cleo and former editor-in-chief of the Weekly, said the potential sale was a reflection of what had been happening for some time with once great established Australian companies.

The sale has been triggered by the debt woes of its current owner, foreign private equity firm CVC, which owns ACP and the Nine Network.

Ms Buttrose said the ACP sell-off was symptomatic of a wider malaise.

“We are selling business, we are selling the farm, we are selling the manufacturers, we sold Vegemite,” she said.

“Soon everyone will own Australia and Australians will own nothing. I suppose this is the price you pay for being part of the global economy.”

Fat Prophets senior media analyst Greg Fraser said: “It would be a historic moment.”

“We’ve associated ACP magazines for more than three generations with the Packer family. While that’s passed in some people’s minds, it was their business.”

A Bauer spokeswoman last night did not hose down speculation of the sale, saying they would issue a statement at a later date.