American Media Inc. (AMI) and Evercore Partners will acquire Weider Publications Inc., publisher of Shape, Men’s Fitness and other magazines, in a $350 million deal, the firms announced today.
News reports stating that this was the largest publishing acquisition of the year were inaccurate. That honor belonged to the Reader’s Digest-Reiman Publications purchase, which went for over $600 million.
The deal announced today does not include Weider Nutrition, a public company that sells nutritional products online.
American Media publishes the National Enquirer, Star and several other periodicals. It also owns Distribution Services Inc. a magazine merchandising company.
AIM chairman David J. Pecker said in a statement that the purchase will “dramatically expand our consumer magazine division and transform itself into a major media company with a better balanced portfolio of revenues between circulation and advertising.”
Observers said the challenge for AIM will be continuing and expanding Weider’s growth. The firm has doubled its revenue over the past five years.
“Weider has done okay in a tough market,” said Harry Chevan, a principal in the DM investment firm Gruppo Levey & Co. “The question is how you extend this franchise to get more bang for the buck on the purchase. David Pecker is a genius at doing that.”
Founded in 1940 by bodybuilder Joe Weider, Weider Publications also publishes Muscle & Fitness, Muscle & Fitness Hers, Fit Pregnancy and Natural Health. And the firm sponsors the Mr. And Ms. Olympia contests and other competitions.
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