Future plc is to sell its UK rock titles Classic Rock, Metal Hammer and associated brand extensions to Team Rock Limited for £10.2m. The sale will be made on a cash-free and debt-free basis. Completion will occur on 16 April 2013.
As well as Classic Rock and Metal Hammer magazines, the sale includes associated periodicals Prog and AOR, as well as branded events The Golden Gods and The Classic Rock Roll of Honour.
The net sale proceeds will be used to reduce the level of bank debt and provide additional headroom under the Group’s new credit facility for further strategic digital investment. Future retains a portfolio of music-making titles and the musicradar.com website.
For the year ended 30 September 2012, the revenue, gross contribution and adjusted pre-tax profit attributable to these brands were £8.6m, £1.8m and £0.2m respectively. At 30 September 2012, the gross assets relating to these brands were £6.6m.
Mark Wood, Future’s Chief Executive, said: “Classic Rock and Metal Hammer generate revenues predominantly from print. Their sale is in line with Future’s strategy of prioritising products which are international and digital. These two iconic print brands have not been central to that strategy and will thrive within a broader music business.”
- Future plc interim management statement for the period from 1 October 2012 to date Posted on February 4, 2013
- Future Plc preliminary results – earnings boosted by digital growth Posted on November 27, 2012
- Future sells its US Music division to New Bay Media for $3M Posted on January 13, 2012
- Future PLC’s CEO & FD resign Posted on October 27, 2011
- Future Publishing emerges as a contender for BBC Worldwide’s magazine division Posted on February 24, 2011