6th Jul 2007 07:00
6th July 2007 Daily Mail and General Trust plc (`DMGT') Acquisition of local media assets from Trinity Mirror plc
Northcliffe Media, the local media division of DMGT, announces that it has exchanged contracts to acquire the assets of three local divisions from Trinity Mirror plc for a cash consideration of ‚£64.15 million. Completion is expected later this month. The assets had an adjusted EBITDA of ‚£7.3 million for 2006.
The divisions are East Surrey and Sussex Newspapers, which publishes two paid for weekly newspapers (Croydon Advertiser and Surrey Mirror), five free papers and numerous local websites; Kent Regional Newspapers, which publishes six paid for weekly newspapers including the Folkestone and Dover Herald and seven free newspapers including the Adscene Series; and Blackmore Vale Magazine, a unique free distribution product published in Dorset.
The South East is currently Northcliffe's smallest region. The new titles and websites are complementary to Northcliffe's existing portfolio, extending the reach of our products to a wider audience of both advertisers and readers. They also provide a platform to extend the Group's online products to a wider geographic area. The business will be combined with Northcliffe's South East division, apart from Blackmore Vale Magazine, which will become part of the South West Weeklies division.
Over the last sixteen months, Northcliffe has focused on becoming a local media organisation through the integration of its digital and newspaper publishing activities. It has also dramatically improved operating efficiency. Recent disposals include Aberdeen Journals, Northcliffe Retail and its 25% shareholding in fish4.
Northcliffe continues to record slowly improving advertising revenues which were up by 0.3% in the quarter to the end of June compared to a decline of 1.0% in the previous quarter. Recruitment advertising grew by 5.5% (compared to 2.0%) over the same period and property was up by 7.5% (8.2%).
We expect the transaction to be earnings enhancing from the date of acquisition.
Commenting on the announcement, Michael Pelosi, Managing Director of Northcliffe Media said:
`Over the last year the transformation of Northcliffe has been dramatic. We believe that the division has an excellent future as a provider of high quality local media content and services. Today's acquisitions strengthen our publishing reach in a region demonstrating strong economic growth where digital opportunities are particularly attractive. We are acquiring strong products which are at the heart of their local communities and are looking forward to working with our new colleagues.'
Enquiries:
Peter Williams, Finance Director, DMGT, 020 7938 6631
Michael Pelosi, Managing Director, Northcliffe, 020 7400 1454
Andrew Honnor, Tulchan Communications, 020 7353 4200
AppendixTitles being acquired:Area and Paid/ Day of Circulation/series free issue Distribution (Jul-Dec '06) EAST SURREY AND SUSSEX Croydon Paid Fri 20,510 Advertiser Series Croydon Post Free Wed 98,241 Crawley News Free Wed 37,346 East Grinstead Free Wed 13,691 Observer Sutton & Epsom Free Wed 88,129 Post Series Surrey Mirror Paid Thur 23,591 Advertiser Series Reigate Redhill Free Wed 32,145 & Horley Post KENT REGIONAL NEWSPAPERS Ashford Adscene Free Fri 30,168 Canterbury Free Thur 57,203 Adscene Herne Bay & Paid Thur 5,360 Whitstable Times Folkestone & Free Thur 58,151 Dover Adscene Folkestone Paid Thur 13,569 Herald Dover Express Paid Thur 9,784 Maidstone Free Wed 47,682 Adscene Medway Adscene Free Wed 78,308 Medway News Paid Fri 10,142 Medway Standard Paid Tues 3,815 Sittingbourne Free Fri 15,827 Adscene East Kent Paid Wed 15,040 Gazette Group (incl Faversham Times) Thanet Adscene Free Wed 52,968 Isle of Thanet Paid Fri 14,843 Gazette Thanet Times Paid Tues 8,672 BLACKMORE VALE PUBLISHING Blackmore Vale Free 54,850 Magazine Fosse Way Free 28,000 Magazine Community Free 54,000 Magazine Source July to December 2006 ABC/ VFD
DAILY MAIL & GENERAL TRUST PLCRelated Shares:
DMGT.L