Primedia has agreed to sell its Enthusiast Media (EM) division to merchandising and fulfillment giant Source Interlink Companies, Inc. in a $1.2 billion all-cash transaction.
The division comprises more than 70 magazine titles, 65 events and 90 Web sites, including Motor Trend magazine, Automobile magazine, Hot Rod magazine and Lowrider magazine. The division also has a television program and 400 branded products.
The transaction is expected to close mid-summer, and is subject to regulatory approvals and other closing conditions.
Steve Parr, EM's president, will head the new EM division of Source Interlink. He will report to Michael Duckworth, chairman of Source Interlink.
"This acquisition is a first step to leverage what we have built by transforming Source into a fully integrated media company with both print and digital content," Duckworth said.
EM had revenues of $524.8 million for fiscal 2006. Source Interlink estimates the combined companies generate about $2.4 billion in revenue and more than $180 million in EBITDA on an annualized basis.