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American Media, Inc. Receives Final Payment From Meredith Corporation For Sale Of Shape Resulting in A Final Valuation Of $79 Million

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American Media, Inc. Receives Final Payment From Meredith Corporation For Sale Of Shape Resulting in A Final Valuation Of $79 Million

PR Newswire

NEW YORK, Aug. 17, 2018 /PRNewswire/ -- American Media, Inc. (AMI), a leading publisher of celebrity journalism and health and fitness magazines, today announced that it has received a final payment of $19 million as part of its agreement to sell Shape to Meredith Corporation. This payment closes the three-year profit sharing agreement between the companies. AMI received an initial payment of $60 million in 2015. The total valuation of $79 million represents a seller's multiple of more than 13x Shape's earnings on a stand-alone basis at the time of the acquisition and a buyer's multiple of 8x on a contribution basis.

"This is an extraordinary statement on the value being created for our brands at AMI," said AMI Chairman and CEO David J. Pecker. "We look forward to further improving our financial structure as we remain committed to our growth strategy and continue to drive revenue and EBITDA through new products and strategic acquisitions."

The proceeds from the $19 million payment will be used by AMI to retire existing debt which reduces the company's first lien leverage to less than 2x EBITDA.

About American Media, Inc.
American Media, Inc. (AMI) owns and operates the leading print and digital celebrity and active lifestyle media brands in the United States. AMI's titles include Us Weekly, Star, OK!, In Touch, Life & Style, Closer, Men's Journal, Muscle & Fitness, Mr. Olympia Contest, National Enquirer and other celebrity and teen titles. AMI also manages eleven different digital sites including Usmagazine.com, OKmagazine.com, RadarOnline.com, Intouchweekly.com, Lifeandstylemag.com, Closerweekly.com, MensJournal.com, MuscleandFitness.com and other digital and social properties.  AMI's magazines have a combined total circulation of 5.7+ million and reach approximately 65 million men and women each month.  AMI's digital properties reach approximately 68 million unique visitors monthly.

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SOURCE American Media, Inc.

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