Specialist media and events company Future has announced, 7 July, the proposed acquisition of the Home Interest division of Centaur Media plc for a cash transaction of £32m.
Future said it would conduct a placing to raise £22m to part-fund the acquisition through the issue of 8,800,000 new ordinary shares at 250 pence per share.
The sale of the Home Interest division by Centaur Media is conditional upon shareholder approval.
The company said the acquisition would diversify Future’s revenue streams, adding significant scale in events. It described the business as having, “good revenue visibility and attractive working capital dynamics”.
The deal will brings three key brands to Future’s portfolio: Homebuilding & Renovating, Period Living and Real Homes, as well as seven exhibitions, print and digital assets.
Future said its acquisition and placing, “are expected to be materially earnings enhancing for Future shareholders in the first full year of ownership, and return on investment expected to exceed Future’s weighted average cost of capital”.
Numis and N+1 Singer have been appointed as joint bookrunners in respect of the placing, which is fully underwritten.
The placing will be used principally to part-fund the acquisition, with the balance to be funded from a new £12m banking facility with HSBC.
Future said its trading during H2 has continued to perform well and Zillah Byng-Thorne (pictured), CEO of Future, commented: “Centaur’s Home Interest division will significantly add to our scale and momentum, while further diversifying our revenue streams, as we continue to build a global platform business for specialist media with data at its heart.”
She added that the Home Interest brands, market position, industry leading events and quality content were “a strong fit and will further reinforce our position as a trusted destination for consumers and for our customers”.