Hearst Corporation to buy the international magazine business of Lagardère

Lagardère SCA has received a fully binding offer of €651 million from Hearst Corporation, for its non-French magazine business with an attached share purchase agreement. The business, which generated revenues of €774 million in 2010, includes 102 titles in 15 countries (The United States, Russia & Ukraine, Italy, Spain, UK, China, Japan, The Netherlands, Czech Republic, Hong Kong, Mexico, Taiwan, Canada and Germany). The deal includes a license allowing Hearst to continue publishing Elle magazine and Elle across other media for a fee of circa €8 million per year.

Lagardère will retain, in some European countries, real estate assets, currently used by the international magazine business, worth around €30M.

Closing of the transaction is expected by Q3 2011.

France, Paris

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