Mirror to buy MEN in £44.8m deal
THE Guardian Media Group has announced the sale of the Manchester Evening News and its sister titles to Trinity Mirror for £44.8m.
GMG Regional Media publishes 22 newspapers and associated websites, including the flagship Manchester Evening News.
Staff at the MEN’s city centre offices in Spinningfields were told today that they will be relocating to Oldham within the next six months.
Trinity Mirror will not be acquiring Channel M, the TV station for Greater Manchester, along with two local newspapers in Woking.
Trinity will only pay £7.4m in cash for the group – the remaining £37.4m will come from the release of a long term printing contract.
The businesses, which made no operating profit in the 12 months to December 2009, have gross assets of £8.7m.
Trinity Mirror, which owns the Liverpool Daily Post and the Echo, said the acquisition would complement its existing portfolio reinforce its commitment to regional media.
Sly Bailey, chief executive of Trinity Mirror, 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 of 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.”
Ms McCall is understood to have been berated by staff as she announced the sale, with some accusing her and GMG of “selling the MEN down the river.”
Mark Dodson, chief executive of GMG Regional Media, is leaving the business, along with Ruth Spratt, managing director of MEN Media.
David Sharrock, currently chief operating officer of GMG Regional Media, has been appointed as managing director of MEN Media.
The MEN was founded in 1868 and bought by the Guardian in 1924. The deal all but ends the Guardian’s long association with Manchester.
The transaction is due to complete on March 28.
Law firm Addleshaw Goddard, led by Charles Penney and Manchester-based corporate partners Roger Hart, acted for GMG on the sale.
