The portfolio pruning is continuing unabated at Emmis Communications. It has reported to the Securities and Exchange Commission that it has a deal at the letter-of-intent stage to sell a group of magazines to an unnamed buyer.
The key titles in the sale were identified as Country Sampler and Smart Retailer, both of which are trade rather than consumer publications. According to the SEC filing, other related publications are included in the deal.
The filing was dated 8/10/12 and it stated that the buyer has 60 days to pull the trigger on the deal. Emmis expects it to close 9/30/12, indicating a high level of confidence that the deal will go through.
Emmis said that three things stand in front of closing: Due diligence, negotiation of a definitive contract and lender approval.
The price is listed at about $9M. The magazines earned $1M in operating income in the 12 months ending 5/31/12.
Here are Emmis’ descriptions of the two titles:
* Country Business is a trade magazine geared toward independent retailers of gifts and home accents. Published seven times a year, it is a source for industry information, business advice, trends and wholesale product. In addition to the print publication, Country Business serves its readers and the larger retail industry through two e-newsletters, email blasts, social media discussion forums, a stand-alone website, seminars and sponsored industry events.
* Smart Retailer is the definitive resource for industry information and wholesale merchandise for independent gift and home-decor retailers. Smart Retailer covers all of today’s popular styles, including country, traditional, vintage, coastal and more, and it provides new-product previews, trend reports, display ideas, and valuable business advice to help retailers build smart businesses.