Trinity Mirror buys Manchester Evening News
- Added:
- Feb 10, 2010
Trinity Mirror has bought Guardian Media Group's Regional Media for £44.8 million, as the local arm of the Guardian struggled to make profit last year amid falling ad sales and growing competion from the internet.
Included in the sale are both GMG Regional Media's subsidiaries, MEN Media which publishes the Manchester Evening News and 21 weekly titles in the North-West, and Surrey and Berkshire Media, which publishes ten titles in the South-East including the Reading Post.
The businesses of Regional Media made no operating profit in the 12 months to December 2009 and have gross assets of £8.7 million.
The deal excludes GMB's Channel M, the TV station for Greater Manchester and the two local newspapers in Woking.
''This acquisition reinforces Trinity Mirror's commitment to regional media and complements the Group's existing portfolio and marketplaces'', said Trinity Mirror in a statement.
With 2008 revenues at 871.7 million pounds, Trinity Mirror, a FTSE 250 Index company based at Canary Wharf in London, is one of the UK's biggest newspaper group publishing five National newspapers , over 120 regional newspapers and has more than 400 digital products.
Sly Bailey, chief executive said, "GMG Regional Media is a perfect strategic fit for our Group. This acquisition, which includes the Manchester Evening News with its proud and rich journalistic heritage, together with the weekly titles and associated websites extends our reach across print and online and is a further step towards our strategic goal of creating a multi-media business of real scale."
Carolyn McCall, chief executive, Guardian Media Group said, "GMG is mandated to secure the future of the Guardian in perpetuity, and we have a strong portfolio which has to be in the right shape to achieve that goal. The Group board and the Scott Trust have made the decision to sell in light of these strategic objectives.''
''GMG Regional Media is a good business and a publisher of important newspapers. However, we believe Trinity Mirror, as the UK's biggest regional publisher, is best placed to develop this business. This is an agreement that delivers real value for both parties," she added.
The deal is due to close on March 28.
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