Seven West (ASX:SWM) has this morning confirmed reports it will sell Pacific Magazines to Bauer Media for $40 million.
The sale price represents a 4.9 times EV/EBITDA multiple based on the 2019 financial year.
Pacific Magazines publishes Marie Claire, Men’s Health and Better Homes and Gardens.
The proceeds of the sale will be used to pay down debt, improving SWM’s balance sheet following its purchase of Prime Media last week.
Seven says the sale of Pacific Magazines is another major initiative aligned with its strategy to improve balance sheet flexibility and simplify the operating model to enable greater focus on growth initiatives.
Shares in Seven West (ASX:SWM) are trading 3.9 per cent higher at $0.40.