TVA Group, a subsidiary of Quebecor Media, announced today that it has reached an agreement with TC Transcontinental to acquire 15 magazines for a cash consideration of $55.5 million. The transaction is subject to Competition Bureau approval.
When the transaction closes, TVA Group will become the sole owner of 11 of the newly acquired titles: Coup de pouce, Canadian Living, Véro Magazine, Décormag, Style at Home, Fleurs Plantes Jardins, Canadian Gardening, Québec Vert, The Hockey News, MaisonNeuves.com, Condo Maison Direct, along with the recettes.qc.ca, Quoi manger, and On the Table websites. TVA Group will also hold an effective 51% shares in Les Publications Transcontinental-Hearst Inc., publisher of Elle Canada and Elle Québecmagazines, in partnership with Hearst Group, which holds a 49% share. As well, TVA Group and Bayard Group will each hold a 50% share in Publications Senior Inc., publisher of Le Bel Âge and Good Times magazines.
Print media is facing growing competition from digital media and new technological platforms. And bear in mind that the competition notably comes from increasingly powerful foreign players. In this landscape, print magazines, just like newspapers, need to be consolidated to ensure these traditional media survive and allow them to compete with digital media.
This acquisition is in line with the Corporation’s strategy of investing in the production and distribution of high-quality, rich, diverse entertainment and news media content. We are therefore very pleased to acquire these strong brands, which are amongst the most popular magazine titles in Canada, and complementary to those of TVA Publications titles.
TVA Group has extensive experience in magazine publishing. This transaction will enable us to capture significant operational synergies and secure the segment’s long-term profitability and viability. We anticipate that after these magazines are acquired they will contribute between $10 million and $14 million to operating earnings annually, concluded Julie Tremblay.
Until the transaction receives final approval from the Competition Bureau, TC Transcontinental will continue to operate those magazines.