Casey leading MBO bid at Smurfit magazines

Smurfit Communications, the largest consumer magazine publisher in the Republic, is the subject of a management buy-out bid led by chief executive Ms Norah Casey.

The company's parent, Jefferson Smurfit Ireland, is believed to have agreed to sell the company's seven titles to a management team led by Ms Casey.

A spokesman for Smurfit Communications confirmed the move last night, but declined to put a value on the deal or say how it was being financed.

The company's 42 staff were informed of the changes yesterday and told their jobs would be safe. A spokesman said only legal hurdles now needed to be cleared.

The group is one of the best known magazine publishers in the State, publishing the titles: U, Irish Tatler, Auto Ireland, Cara, Food and Wine, Woman's Way and Auto Woman.

Of these titles U is the flagship, with an ABC circulation figure between July and December of 2003 of 52,376. This was bettered only by the RTE Guide.

The second biggest selling Smurfit title is Woman's Way, which boasts a circulation of 30,638.

Accounts for Smurfit Communications are not broken out separately by the parent group but the company is believed to be moderately profitable.

Since Jefferson Smurfit Group was taken private following a deal with US private equity house Madison Dearborn, assets considered non-core, like the magazine business, have been readied for sale.

It is understood several publishers considered purchasing the Smurfit titles before, but decided not to proceed.

Ms Casey's long experience in the magazine sector is believed to have been a crucial factor in bringing the deal together.

The magazine publisher found itself embroiled in major controversy in 2002 when Ms Casey admitted some of its circulation figures were inflated by up to 30 per cent.

Advertising agencies were greatly angered by the disclosure and Smurfit Communications agreed to get an ABC audited circulation soon after.

The overstatement was discovered in February 2002 by Ms Casey, who began an internal investigation.

Following the controversy, Ms Casey resigned from her position as chairwoman of the Periodical Publisher's Association of Ireland. Ms Casey's resignation letter blamed the "difficult and complex" issues coming out of the overstatement of circulation for her decision to resign as chairwoman.

"My determination is to ensure that all the magazines we publish are put back on the best possible footing, and that no one will need to question the accuracy of any information in relation to them in the future," she said.