(Alliance News) - Publishing firm Future PLC said Wednesday it will acquire magazine printer TI Media for GBP140 million in cash and proposed to raise funds through placing of new shares.
Future will buy TI Media - which owns brands including Decanter, Country Life and Horse & Hound - for GBP140 million in cash.
For the year ended May, adjusted earnings before interest, taxes, depreciation & amortisation stood at GBP28.7 million on revenue of GBP201.5 milllion. For the year ended September 2018, Future reported adjusted Ebitda of GBP20.7 million from revenue of GBP124.6 million.
In order to partly fund the deal, Future plans to place up to 8.2 million shares through an accelerated bookbuild at a price yet to be determined. The placing shares represent around 9.6% of total share capital of the firm.
Based on the 1,360.00 pence per share closing price on Wednesday in London, the placing could raise GBP111.3 million in proceeds. Shares in Future had closed 5.4% higher on Wednesday.
In addition, Future extended its debt facility by GBP45 million to GBP135 million in order to help fund the deal.
"This acquisition provides an outstanding opportunity to accelerate Future's strategy and to bolster its growth levers," Future Chief Executive Officer Zillah Byng-Thorne said.
"TI Media's long-established market leading brands, industry events and quality content are an exceptional fit with our business and our strategy," Byng-Thorne added. "TI Media will substantially expand our presence in existing verticals and bring a number of new content verticals that will significantly enhance the Future portfolio."
"This deal marks the latest move in our strategy to deliver growth both organically and through acquisition," Byng-Thorne continued. "We are confident that the acquisition will be materially earnings enhancing in the first year, driving further growth in profitability and cash generation whilst significantly enhancing our scale and reach."
By Ahren Lester; ahrenlester@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
Future (FUTR)