The idea at Source Interlink, whose largest shareholder is Ron Burkle's Yucaipa Cos., is to combine Primedia's content with its magazine-distribution and merchandising programs to create a full-service media company.
"Over the last several years, Source has driven the consolidation of a fragmented and inefficient channel for the distribution and merchandising of home-entertainment content at retail and the newsstand," said Michael Duckworth, chairman, Source Interlink. "This acquisition is a first step to leverage what we have built by transforming Source into a fully integrated media company with both print and digital content."
Primedia, whose other assets once ranged from New York magazine to the in-school network Channel One, has been selling off chunks of its portfolio in recent years and months to pay down debt and refocus its business. Its enthusiast division comprises more than 90 websites, more than 60 event programs, some 400 branded products and more than 70 magazines, which in addition to Hot Rod and Motor Trend include titles such as Soap Opera Digest, Power & Motoryacht and Snowboarder.
"We are delighted with the end result of this process," said Dean Nelson, CEO, Primedia. "We are able to emerge from this auction virtually debt free and completely focused on our Consumer Source business."
Primedia Consumer Source publishes and distributes free publications such as Apartment Guide and Auto Guide.