Knapp Sells 2 Magazines to Conde Nast : Publishing: The lavishly produced Architectural Digest and Bon Appetit reportedly brought $175 million.

Los Angeles-based Knapp Communications on Tuesday sold Architectural Digest and Bon Appetit magazines to Conde Nast Publications, owners of Vanity Fair and the New Yorker.

Knapp and Conde Nast declined to reveal the selling price, but publishing industry sources said it was about $175 million. Conde Nast beat out three other bidders.

Privately owned Knapp Communications put the two magazines on the market last November, after owner Cleon T. (Bud) Knapp decided to devote his time to philanthropic activities.

Conde Nast is a subsidiary of New York-based Advance Publications, which is owned by the Newhouse family. The family’s media empire spans magazines, newspapers and cable TV.

Architectural Digest and Bon Appetit, with their lavishly produced pages spotlighting luxury homes and gourmet cuisine, target the affluent segment of the magazine market, as do several Conde Nast publications such as Vogue, HG, Gourmet and Conde Nast Traveler.

“Both of these magazines fit into a clearly defined niche,” said Bernard Leser, president of Conde Nast Publications. “That market will continue to grow.”

Knapp’s editorial offices will remain in Los Angeles. Knapp said he expects Architectural Digest Editor Paige Rense and Bon Appetit Editor Bill Garry to continue in their current positions under Conde Nast, as well as about 250 other Knapp Communications employees.

“There is a lot of incentive for senior executives to stay on with the company,” Knapp said. “Including the two editors.”

Since the acquisition will not be completed for 30 days, Leser said it is too early to say where or how the magazines will fit into the Conde Nast organization.

Architectural Digest has sales of about 650,000 and Bon Appetit about 1.2 million. The two magazines had combined revenue of $90 million to $95 million last year, Knapp said. “It was our most profitable year in history,” he added.

Knapp said his decision to sell the two magazines was based on a “personal and strategic decision. . . . I’ve been at this thing for 35 years, and it’s time to do something else. I built the magazines up as far as I was willing to risk capital and now they need a company with greater resources to take them forward. . . . I also knew we were going to have a good financial year.”

Knapp said he would use some of the proceeds to help endow the Knapp Foundation, which would fund cultural, arts and educational projects in addition to helping fund medical research. The foundation will be based in Los Angeles.