Bauer, in German, translates to peasant. But there’s nothing poor about Australia’s newest media powerhouse Bauer, the Hamburg-based family company that has snapped up the ACP magazine stable for $500 million.

It’s no wonder ACP staffers around the country are pleased by the arrival of their new German overlords. Unlike CVC, the private equity firm that owns ACP and the Nine Network, the family-owned Bauer has print running through its veins and isn’t laden with debt. Despite its German roots, it’s also got a track-record of publishing titles that resonate with local markets. The company tends to take a hands-off approach and allows local managers to run the local business.

ACP staff were told this morning there would be no immediate change in management structure. Matthew Stanton will remain CEO of the hived-off magazines arm. In a memo to staff, he said the deal “brings with it a positive and clear future”.

The Bauer Media Group publishes about 400 magazines across 15 countries, has about 8700 employees and generated €2 billion in sales last year. Among its UK titles are Grazia, FHM and That’s Life.

“Bauer is a major player,” Matt Handbury, the former owner of the Murdoch Magazines empire, told Crikey this morning. “They know magazines, they’ve got financial strength and experience.”

Handbury, who considered buying ACP himself but didn’t have enough cash, says the magazine stable is “worth every cent” of the $500 million Bauer paid for it. “I’m sure ACP can be worth $1 billion or $2 billion in the future,” he said.

However, he cautioned: “No foreign owner has ever been able to run a successful magazine publishing division in Australia. Time tried, Conde Nast tried, Emap tried. But that doesn’t mean Bauer can’t do it.”

Handbury, who is Rupert Murdoch’s nephew, hopes Bauer abandons CVC’s strategy of slashing ad rates to help shore up short-term profits.

Although the sale bodes well for the magazine stable, uncertainty surrounds the future of NineMSN, which relies on ACP magazine content to fill its highly-trafficked but lowly-staffed website. NineMSN currently has responsibility for the bulk of the ACP mag stable including including Cleo, Australian Women’s Weekly, House & Garden, Wheels, Zoo, TV Week, Mother and Baby and Gourmet Traveller.

Nine Entertainment Co has also pursued integrated advertising deals across its television, magazine and internet interests — deals that wouldn’t be possible in the future if Bauer goes it alone on its digital offering. Some ACP insiders, however, expect Nine and Bauer to stitch up a content sharing deal over coming weeks.

Hal Crawford, NineMSN’s editor-in-chief, declined to speculate on the website’s future this morning, saying it was “business as usual” for the site.