Meredith Corp. closed the sale of the Fortune media brand for $150 million in cash to Fortune Media Group Holdings Ltd., an entity owned by Chatchaval Jiaravanon.
Meredith will provide short-term business continuity services as part of the transaction and entered into a multiyear agreement with Fortune Media to offer services including marketing, subscription fulfillment, paper purchasing and printing, according to a Dec. 21 news release.
The company acquired the Fortune magazine and media brand as part of its Time Inc. purchase in January. Later in the year, the company sold the Time media brand, including flagship Time magazine, to Marc Benioff and his wife, Lynne Benioff, for $190 million in cash.
Meredith intends to use proceeds from the sale to pay down its debt, which the company plans to reduce by $1 billion during fiscal 2019. Meredith is targeting a net debt-to-EBITDA ratio of 2.0x to 1 or better by the end of its fiscal 2020. This includes generating $1 billion of EBITDA and having net debt below $2 billion by the end of fiscal 2020.
Citigroup Global Markets Inc. was financial adviser to Meredith and Cooley LLP was legal adviser. Deloitte LLP was financial adviser to Fortune Media Group Holdings and Zhong Lun Law Firm and Dechert LLP were legal advisers.