Seven West Media Ltd. agreed to sell its Pacific Magazines business to multiplatform publisher Bauer Media Pty. Ltd. for a cash consideration of A$40 million.
The Australia-based broadcaster also entered into several commercial agreements with Bauer Media, including ad spend commitments, the ongoing production of the "Better Homes and Gardens" TV program and sharing lifestyle content under a long-term agreement. Additionally, Seven West Media will receive A$6.6 million of advertising on Bauer Media assets over a three-year period.
Subject to the approval of Australian Competition and Consumer Commission, the sale of Pacific Magazines is expected to be completed by the end of 2019.
The company said proceeds of the transaction will be used to pay down debt, allowing Seven West Media to improve its balance sheet flexibility and focus on its content-driven growth strategy.
The deal comes shortly after Seven West Media announced a merger with regional TV broadcaster Prime Media Group Ltd. and the divestment of its Western Australia radio assets.
Bauer Media is a subsidiary of German multimedia conglomerate Heinrich Bauer Verlag KG, or Bauer Media Group.