16th Sep 2005 10:30
Johnston Press PLC16 September 2005 For Immediate Release Friday, 16 September 2005 JOHNSTON PRESS plc ACQUISITION OF LOCAL PRESS LIMITED The Board of Johnston Press plc ('Johnston Press') announces today that it hasentered into an agreement with the shareholders of Local Press Limited ('LocalPress', 'the Company') to acquire the entire issued share capital of theCompany. Local Press Group (Local Press and its subsidiary undertakings) began trading on15 January 2004 following the acquisition of Trinity Mirror's Northern Irelandand Republic of Ireland newspaper division by a 3i Group backed management team.The Local Press Group publishes 12 main titles, eight in Northern Ireland, threein the Republic of Ireland and one title which is published in both. Local PressGroup comprises three separate publishing companies, Derry Journal Limited andCentury Press and Publishing Limited in Northern Ireland and The DonegalDemocrat Limited in the Republic of Ireland. Total weekly circulation for LocalPress Group is approximately 343,000 and the portfolio of titles includes theNews Letter, the oldest continuously published newspaper in the English-speakingworld, and the Derry Journal, winner of Northern Ireland regional newspaper ofthe year in 2002. For the period to 2 January 2005, Local Press Group (whichbegan trading on 15 January 2004), reported total revenues of £18.5 million andoperating profit of £4.9 million before exceptional items, representing a 54%increase over the prior year. Johnston Press believes that Local Press represents an attractive andcomplementary addition to its recently acquired portfolio of titles in NorthernIreland and the Republic of Ireland. As well as extending Johnston Press'presence in these profitable and well-established markets, the acquisition willalso provide opportunities for operational and purchasing synergies. Under the terms of the agreement, Johnston Press has agreed to acquire LocalPress for an aggregate cash consideration of £65 million on a cash and debt freebasis and this consideration will be satisfied from Johnston Press' bankingfacilities. Johnston Press expects that the acquisition of Local Press will beearnings enhancing (excluding the impact of acquisition related exceptionalitems) in the current financial year. The acquisition is subject to the approval of the Irish Competition Authorityand the Irish Minister for Enterprise, Trade and Employment under thelegislation governing competition and the ownership of newspapers. PRESS ENQUIRIES Johnston Press plc 0131 225 3361Tim BowdlerStuart Paterson Buchanan Communications 020 7466 5000Richard Oldworth/Suzanne Brocks This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Johnston Press PLC