Thursday, October 19, 2017

Hearst buys Rodale Inc. and its titles, including Men's Health, Prevention and Runner's World

Hearst has bought Rodale Inc. in a deal which is said to be less than $250 million. It's but one of a number of consolidations taking place in the industry.

Rodale publishes Men’s Health, Women’s Health, Prevention, Rodale’s Organic Life, Runner’s World and Bicycling. It also includes Rodale Books and an international division with which Hearst already has a joint venture. 

Critical to the deal was the assumption by New York-based Hearst of $30 million in unfunded pension liability and losses from real estate deals and vendor contracts. The deal may therefore wind up amounting to $100 million or less. 
One source characterised the deal as a “stunning collapse” of Rodale. The collapse is indicative of a broader change in the magazine industry, as smaller publishers, such as Wenner Media, are now closing or selling off titles.
David Carey, president of Hearst Magazines, said
“Maria Rodale has grown her family’s business into a peerless authority that reaches an enormous audience. Hearst and Rodale are already publishing partners around the world, including the U.K., the Netherlands and Japan, and we’ve seen first-hand how the content resonates. We are pleased to add them and all of Rodale’s brands to our vibrant and varied global portfolio, providing readers with dependable information and offering marketers unbeatable scale and a trustworthy environment in the increasingly important health and wellness space.”

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