EMAP Petersen, Inc. Acquires Automotive Magazine Group
11 February 1999
EMAP Petersen, Inc. Acquires General Media's Automotive Magazine Group - EMAP Petersen to Acquire Four Magazines and TV Rights -
NEW YORK, Feb. 11 -- EMAP Petersen, Inc. announced that it
has entered into an agreement to acquire General Media's Automotive Group,
which includes four monthly magazines, "FOUR WHEELER," "STOCK CAR RACING,"
"OPEN WHEEL," "DRAG RACING MONTHLY," and the rights to "FOUR WHEELER TV."
These publications will become part of Petersen's current Automotive Group,
which includes "HOT ROD," "PETERSEN'S 4-WHEEL & OFF-ROAD," "RICHARD PETTY'S
STOCK CAR RACING" and 20 other titles.
On making the announcement, Petersen's Chairman and CEO James D. Dunning,
Jr. said, "The acquisition of these four titles along with our dominant
position already established in these markets fully surrounds the enthusiasts
of these exploding niche markets. The addition of Four Wheeler TV furthers
our strategy of adding new multimedia opportunities at Petersen for its
advertisers and customers."
"The integration of Petersen is going well, providing a good platform for
further growth -- both organically and by way of acquisition." EMAP plc Chief
Executive Kevin Hand commented. "We were delighted with the 93% take-up of
our rights issue, the monies from which allow us to continue to develop the
Group with new launches and value-added acquisitions such as this portfolio of
auto titles."
Bob Guccione, chairman of General Media International, added, "The sale of
the magazines is a strategic step that strengthens Penthouse, our growing
flagship franchise. We have already established a formidable presence on the
World Wide Web, where we hold a leadership position and continue to grow
rapidly. We are focused on expansion in the new media and in other
entertainment areas."
"FOUR WHEELER," a monthly publication with a circulation of 352,535, is
the second leading magazine in the American four-wheel-drive marketplace,
trailing Petersen's own 4-Wheel & Off-Road magazine. These two publications
combined give Petersen a dominant position in this niche marketplace, which
perceives these vehicles not only as utilitarian but also as a life-style
choice. "Four Wheeler" takes hard-core enthusiasts and new-vehicle buyers to
off-road adventures both domestic and abroad, while also providing performance
and pricing information on new 4x4s as well as technical articles on vehicle
enhancements. "Four Wheeler" brings promotional opportunities, such as "Four
Wheeler of the Year" and "Pickup of the Year" award programs, as well as brand
value and recognition as an authoritative, informative and entertaining
resource. With this acquisition, Petersen is poised to pursue unprecedented
circulation and advertising strategies.
"STOCK CAR RACING" magazine, with a circulation of 220,000, is the largest
spectator-oriented title in the market for circle track racing, which has been
called "the fastest growing sport in America" and "the sport of the '90s and
beyond." Combined with Petersen's "Circle Track" magazine, the acquisitions
of "Stock Car Racing" and "OPEN WHEEL," a spectator-oriented auto racing
title, position Petersen to capitalize on the continuing explosive growth of
auto racing, while creating a tiered level of auto racing titles with an
unparalleled reach and penetration of the American circle track audience.
EMAP Petersen, Inc. (http://www.petersenco.com) is a wholly owned subsidiary of
EMAP plc (http://www.emap.com), one of the largest magazine publishing companies in
the world with 603 magazines, more than 6,000 employees worldwide, annual
revenues of approximately US$1.7 billion and a market capitalization of over
US$5 billion. In the U.S. Petersen publications deliver nearly 87 million
readers, including nearly 64 million adults and over 22 million teens.
Petersen's internationally recognized magazines include "MOTOR TREND," "HOT
ROD," "TEEN," "SPORT," "SLAM," "SURFER," "SNOWBOARDER," "POWDER,"
"SKATEBOARDER," "HUNTING," "SKIN DIVER," "PHOTOGRAPHIC," "MOTORCYCLIST" and
"4-WHEEL & OFF-ROAD." In addition to these titles, Petersen has more than 100
trade and consumer events, including the GRAVITY GAMES TM, which is the first
in a series to be aired on NBC Network in October 1999. EMAP's titles in the
U.K. include "MORE," "FHM," "BLISS," "SMASH HITS," "YOURS," "NEW WOMAN,"
"CAR," "MOTORCYCLE NEWS," "PERFORMANCE BIKES and Q," and "TELE STAR," "MODES &
TRAVAUX," "TOP SANTE," "L-AUTO JOURNAL" and "AUTO PLUS" in France. Petersen
is headquartered in Los Angeles and New York. EMAP plc is publicly traded on
the London Stock Exchange under the symbol EMA.L.