Independent Media, part of Sanoma Magazines, the magazine division of SanomaWSOY Group, agreed to acquire a 55% stake in the Russian glossy magazine publisher Lux Media. The deal could be valued at EUR 5 million.
Lux Media publishes the fashion magazine Collezioni, real estate magazine Homes Overseas, and brides title Wedding. The company was founded in January 2005 and has 50 full-time staff. Its annual net sales reached EUR 4 million.
As a part of the deal, Independent Media will have an option to acquire the remaining 45% of Lux Media before 2012. Artyom Keand, the founder of Lux Media will remain with the company as General Director. The deal is expected to close the second quarter of 2008.
In its press release, SanomaWSOY said that the acquisition would strengthen Independent Media‘s position in the luxury segment of the Russian glossy magazine market.
Independent Media’s title portfolio in Russia includes internationally known magazine brands Cosmopolitan, Harper’s Bazaar, Good Housekeeping, FHM, Men’s Health, Esquire, as well as the newspapers Vedomosti and The Moscow Times, among others.
In February 2005, Sanoma Magazines acquired Independent Media for an enterprise value of EUR 142 million or multiple of 2 to its annual net sales. Independent Media recently acquired blogging business Webpark.ru and women’s portal Ameno.ru.