Frankie publisher Morrison Media bought out in $10m deal
The publisher of Frankie Magazine Morrison Media has been acquired by Pacific Star Network (PSN) for $10m as it looks to “diversify the portfolio beyond broadcasting and sport”.
PSN is best known for assets including the SEN sports radio network which broadcasts in Melbourne and its Total Football magazine, whilst Morrison Media’s other titles include The Smith Journal, White Horses and Surfing Life.
Frankie in particular has been a standout performer for print magazines posting consistent climbs in its circulation over the past few audits, and is known for its stylish layout and distinctive content, which PSN has promised to leave untouched.
Andrew Moffatt chairman of PSN said ina statement to the Australian Securities Exchange: “For some time, OSN has been assessing acquisition opportunities and believes that orrison Media provides the combination of first class titles, advertisers and capability that fits within our ambition.
“Frankie is an industry leader in its market segment in Australia and is growing internationally, due to its content which speaks to a highly engaged audience. Our focus will be to provide the Morrison Media team with a platform to grow the titles, by continuing to deliver innovative and relevant content to their audiences.
“Morrison Media will operate as a standalone division of PSN – it will be business as usual.”
In a filing with the Australian Securities Exchange yesterday the company said the purchase value of $10.8m represents a 4.9 time multiple of the $2.2m earnings before interest, tax, depreciation and amortisation.
PSN will now hold an extraordinary general meeting to get shareholder approval for the deal, which will include PSN taking out an $8.6m bank loan as well as asking for a capital raising.
Alex Hayes
Buying a print magazine! They must be the equivalent of Kerry Packer’s Alan Bond
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