Esquire Magazine Group Sells Publications, 2 Other Divisions

Esquire magazine has been sold to Hearst Corp., and its 4-month-old sister publication, New York Woman, has been purchased by American Express Publishing Corp., the companies said Wednesday.

The two magazines’ parent firm will sell another unit, an advertising service called Esquire Health & Fitness Clinic, to Whittle Communications, which is owned by former Esquire co-owner Christopher Whittle. The parent, Esquire Magazine Group, will spin off a third unit, Esquire Press & Video Division, to its shareholders.

Terms of the deal were not disclosed, but industry sources estimated that the privately held company may receive as much as $80 million for the three properties.

The sales, widely rumored in recent weeks, mark the fourth change of hands for the 53-year-old men’s magazine in the past decade. The sale price represents a handsome premium for its president and editor-in-chief, Phillip Moffitt, 40, who purchased Esquire with Whittle in 1979 for a reported $5.5 million.

Esquire magazine has enjoyed a financial turnaround in the past three years, while its latest offshoot, New York Woman, a regionally distributed giveaway, is believed by industry officials to be headed toward success.

In an interview, Moffitt said Hearst intends to largely continue the magazine’s present editorial course and will not replace senior editors. As part of the deal, Esquire Magazine Group’s 150 employees will share in bonuses of about $1 million, he said.

Moffitt said he had long wanted to sell the magazine to find time to write, but had still been wavering in the decision as recently as 10 days ago. “It was the toughest decision of my adult life,” he said.

The change in tax laws influenced the timing of the sale, Moffitt acknowledged.

Esquire will join the Hearst magazine group, which includes Cosmopolitan, Connoisseur, Sports Afield, Harper’s Bazaar, Popular Mechanics and Boating. American Express’s stable consists of Food & Wine and Travel & Leisure.