Magazine plans to buy two rivals

By Frank Cho
Advertiser Staff Writer

The parent company of Hawaii Business magazine said yesterday it will buy rival Island Business magazine and its sister, monthly Honolulu magazine, for an undisclosed amount.

The purchase is PacificBasin Communications first since it bought the 30,000-circulation Hawai'i Remodeling magazine in December. The company said it plans to continue publishing Honolulu magazine, but Island Business will be merged with Hawaii Business magazine.

"What we have been in the process of is building a locally owned media company that is broad-based," said Floyd Takeuchi, president of PacificBasin Communications.

The deal, which is expected to close Sept. 30, will bring PacificBasin's total monthly circulation to about 82,000.

Island Business, which is published by Honolulu Publishing Co. Ltd., had a circulation of about 14,000, but less than 300 of those were paid subscribers. Honolulu magazine's average paid circulation is about 30,000.

David Pellegrin, Honolulu Publishing Co. chairman, said about 20 of his 53 employees will be affected by the sale.

"I've tried to be very generous in terms of severance for those who don't end up with a job," Pellegrin said.

He said employees losing their jobs will receive six months' to one year's severance pay. Remaining Honolulu Publishing Co. employees will receive bonuses of $1,000 for each year of work. Part timer workers received $500 for each year.

Pellegrin said Honolulu Publishing will focus on visitor-industry publications. The company produces Spirit of Aloha, an in-flight magazine for Aloha Airlines and Island Air, and guides for the state's car-rental industry.

Frank Cho can be reached by phone at 525-8088, or by e-mail at fcho@honoluluadvertiser.com.