Pacific Publications picks up Murdoch Magazines

Industry sources point to a desire of the new management team at Pacific Publications to broaden its printing base as a reason why it is unlikely to bundle its new acquisitions with the majority of its titles which are produced by PMP Printing. Currently Murdoch Magazines are printed by Offset Alpine, a member of Hannan-owned Independent Print Media Group (IPMG).

The deal sees magazine industry veteran Matt Handbury exit the industry after months of tortuous negotiations over the up-market titles. The acquisition gives Pacific Publications a better range of titles from which to attack the dominant position of Kerry Packer’s ACP.

According to Ryan Stokes, chairman of Pacific Publications the acquisition significantly strengthens Pacific’s publishing platform and will utilise the efficiencies of the combined group to drive improved margins. “Pacific will consolidate its leading positions across key magazine categories and enhance our advertising offerings,” he said.

New CEO of Pacific Publications, Nick Chan, committed to keeping the current editorial and marketing teams. “We believe the market leadership of these titles coupled with our own considerable strengths will create a compelling solution for major advertisers. The integration of the two magazine operations will provide the foundation for Pacific to deliver stronger revenue shares and profitability over the coming twelve months.”

Murdoch Magazines currently has a circulation market share of around three per cent and an advertising market share of around seven per cent. With the new titles Pacific Publications will have revenues in excess of $200 million and an increased total circulation share of 24 per cent of all magazines sold in Australia and a 17 per cent share of all magazine advertising revenue.

Murdoch Magazines will re-locate to Pacific Publications’ offices situated at McMahons Point, Sydney. Paul Dykzeul, Managing Director of Murdoch Magazines, has agreed to assist with the business transition. Matt Handbury will play a key role in the transition of the titles and the business relationships with the international publishers of the three titles.

“This is a good move for the magazine industry,” said Handbury. “ Placing these market leading magazines into an expanded Pacific Publications will play a key role in further consolidating the industry and delivering a strong competitive marketplace.