Mercury buys Bauer Media's Australia, New Zealand assets

Transaction details have not been disclosed. Bauer acquired the business from Australia's Nine Entertainment in 2012 in a deal said to be worth A$512 million (then $530 million). At the time, Nine was controlled by CVC Capital Partners and under pressure to refinance around A$3 billion in debt.

Mercury is currently investing its third fund, which closed in 2018 at the hard cap of A$600 million. It targets small to mid-size businesses with market-leading positions. The firm describes itself as a hands-on investor with expertise in technology enablement, including implementation of the internet and mobile channels.

Bauer's Australasian business is primarily known for its print magazine titles, including The Australian Women's Weekly and Elle Australia. There is a strong focus on women readers, with additional titles in fashion, beauty, and lifestyle. Entertainment, health, homes, and motoring are also important content categories.

The portfolio includes 43 brands, which are said to reach six in 10 Australian women every month across print magazines, websites, video channels, social media, customer review sites, and podcasts. The annual readership for print and social media is 6.8 million and 30.5 million, respectively. 

"This signals an exciting new chapter for the business," Brendon Hill, CEO of Bauer Media ANZ, said in a statement. "With new ownership and our bolstered portfolio, we have unparalleled opportunities to connect with more Australians than ever before and continue our strategy of digital growth and innovation." 

Mercury had been in talks about an acquisition since last year but delayed the process when Bauer acquired local publisher Pacific Magazines from Seven West Media for A$40 million. Pacific's portfolio includes Marie Claire Australia, Women's Health, Men's Health, and Better Homes & Gardens, all of which are now under Bauer ANZ.

According to The Sydney Morning Herald, industry-wide pressures on publishers such as sharp drops in advertising have led to hundreds of job cuts at Bauer ANZ in recent months and the axing of major titles including Cosmopolitan, People, and Men's Style. As a result of COVID-19 disruptions, Elle, Harper's Bazaar, Men's Health, and Women's Health have also seen temporary suspensions.

"Despite the challenges presented by COVID-19, we have seen significant growth in subscriptions and digital audiences across our food, home, youth and fashion brands, demonstrating that Australians still love and read our brands," Hill added. "We have seen great vision, success and growth under Bauer Media Group ownership and now look forward to working alongside Mercury Capital to build on this growth under a new brand in the future."

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• Topics
• Australasia
• Buyouts
• Media
• Consumer
• Australia
• New Zealand
• Mercury Capital