Boston Ventures sets sights on Shore

Folio: The Magazine for Magazine Management, August 1, 1995

Venture capital firm Boston Ventures, which has experienced strong success in the publishing world with investments in Bill Communications, the Enquirer/Star Group and BPI Communications (twice), has decided to test its mettle once again by buying a majority stake in Shore Communications. According to sources, Boston Ventures has signed a letter of intent to purchase the Atlanta-based publisher, home to Apparel Industry, Sports Trend and Auto Trim & Restyling News.

The offer leaves members of the Shore family with a minority stake (about 20 percent) and management control. The amount of the bid could not be determined, but one nonpublishing contestant bid $27 million for the company Last year, Shore posted pre-tax earnings of $1.8 million on revenues of $14.7 million, says a source. This year's corresponding numbers are projected at more than $2.2 million and $19 million, respectively. Non-magazine profit centers (such as trade shows) account for more than 40 percent of the company's revenues. Six other contenders from the initial round-including PTN Publishing, Cardinal Business Media and Adams Publishing - were pre-empted by Boston Venture's bid. New York City-based Veronis, Suhler & Associates is handling the transaction.