LONDON: Edinburgh-based Scottish regional newspaper group Johnston Press Plc is acquiring Leinster Leader and Local Press Ltd for a total value of 159 million pounds. The company said the buy-outs will strengthen its operations in Ireland. It is paying 93.8 million pounds for Leinster Leader and 65 million pounds for Local Press.
The company said in a statement that these acquisitions represent an attractive and complementary addition to its recently acquired portfolio of titles in Northern Ireland and the Republic of Ireland. The company financed the acquisitions with funds from private equity and venture capital firm 3i, which had in 2004 led a management buyout of Local Press from Trinity Mirror.
Privately-owned Leinster Leader with 27 shareholders, brings out six weekly papers in the Irish Republic -- Leinster Leader, Leinster Express, Offaly Express, Dundalk Democrat, Limerick Leader and The Echo. It also publishes an evening paper in Limerick three days a week. The company had earnings of 8 million euros in the year ending August with a revenue of 21.1 million euros.
Local Press publishes one of the oldest newspapers in the English-speaking world, the Belfast News Letter, and other weekly publications. It made 4.9 million pounds in operating profit for the year ending 2 January on revenue of 18.5 million pounds.
The acquisitions are subject to regulatory approvals.
In June last, Johnston Press had bought Score Press Ltd for 155 million pounds from Emap Ltd. Score Press published local weekly newspapers in Scotland, Northern Ireland and the Republic of Ireland, including Kilkenny People, Leitrim Observer, Tipperary Star and Longford Leader.
Johnston Press' chief executive Tim Bowdler said the two latest acquisitions increased his company's exposure to newspaper advertising market in the Republic of Ireland that grew 15 per cent in the year. He hinted that the group may look at other acquisitions in order to consolidate its position in the publishing world.
The Local Press deal, once finalised, will make David Montgomery, former chief executive of the Mirror Group, richer by 3.3 million pounds as he has 5 per cent stake in the company. Also the VC firm 3i too made a profit out of the deal.
Posted
on : Sat, 17 Sep 2005 16:55 GMT | Business News
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