Enthuse Group acquires 51% stake in AA Media
Enthuse Group, the specialist international publishing and media group, has acquired a 51 per cent stake in AA Media Ltd, the operator of the AA’s hotels, hospitality, publishing and merchandising businesses.
Enthuse owns a diverse portfolio of magazines, events and online communities acquired through a buy-and-build strategy. The comapny’s brands serve thirty major enthusiast communities mainly in the UK and the US.
Under the terms of the agreement, Enthuse will acquire 51 per cent of AA Media Ltd and the balance will be held by AA plc. AA Media will continue to use the AA brand as defined under a brand licensing agreement.
Digitisation of products and services
Enthuse Group said it will work with the AA to grow the business, leveraging existing partnerships. It will digitise its range of products and services and simplify processes utilising Enthuse’s shared services platform.
“It has been a great year for the Group and we are pleased to announce our new joint venture with AA plc. AA Media is a fantastic business with a beloved and trusted brand”, said Owen Davies, CEO of Enthuse Group.
“We are delighted to welcome the AA Media team to Enthuse and we look forward to accelerating the opportunities to digitise and expand the business.”
“2018 was a transitional year for the Group and today’s joint venture partnership continues the momentum. We have increased our range of titles and our geographical footprint and the new joint venture gives us a significant position in the important hospitality and travel sector.”
Enthuse also reported record annual results on Monday. Turnover for Enthuse Group in the year ended 31 December 2018 was up 75 per cent and earnings before tax and other deductions increased 313 per cent.
Last year the Group added to its portfolio with three acquisitions. It expanded its presence in the Fishing and Woodworking hobby communities and in Home Technology. Turnover was boosted significantly by the acquisition of a US home technology magazine and website portfolio from TEN, a GoldenTree owned company.
International expansion also offers a significant opportunity for future growth. “The US market has huge potential for us,” added Davies.
“Twenty-eight percent of our turnover in the last year came from international markets, mainly in the US, and we see further exciting opportunities internationally.”
Davies and his team are ambitious for the future. “Changes in media dynamics and business models are creating exciting opportunities for us. Our platform is highly scalable, and our experienced team understand how to nurture trusted consumer media brands and grow their communities.”