Emap, a UK media group, has sold its consumer magazine and radio units to German publisher Heinrich Bauer Verlag for a total consideration of £1.14bn on a cash free, debt free basis.
The transaction represents a multiple of 2.2 times pro forma 2007 revenue and 11.2 times pro forma operating profit.
The disposals are conditional upon shareholder approval and will be voted on at a general meeting in January. The radio business sale is also conditional upon the completion of the sale of Emap’s Republic of Ireland European radio group Communicorp, a €200m transaction announced in July.
After completion of the disposals, Emap said it would return approximately £1bn of proceeds to shareholders.