NEW YORK — Meredith Corp. says it is buying Time Inc. for about $1.8 billion in a deal that joins two giant magazine companies.
Meredith brings with it a portfolio that includes Better Homes & Gardens, Family Circle, allrecipes and Shape, while Time Inc.’s properties include Time, Sports Illustrated, People, Fortune and Entertainment Weekly.
Meredith will pay $18.50 per share in cash for Time’s nearly 100 million outstanding shares. It said it’s using $3.55 billion in financing commitments from lenders and $650 million preferred equity from Koch Equity Development, an investment arm of Koch Industries, to finance the deal and pay down existing debt. Before the announcement, Meredith had $28 million in cash on hand, according to its latest quarterly report.
The companies said the deal was unanimously approved by their boards.