Birmingham Post publisher buys Manchester paper
THE publisher of Birmingham’s major newspapers has acquired the Manchester Evening News and other titles from the Guardian Media Group.
Trinity will pay £7.8m in cash and release GMG from a £37m print contract. The deal involves GMG’s 22 regional titles in the North West including the flagship Manchester Evening News, and ten titles in the south of England.
However, Trinity Mirror will not be acquiring Channel M, the TV station for Greater Manchester, along with two local newspapers in Woking.Trinity Mirror publishes the Birmingham Post, the Birmingham Mail and the Coventry Telegraph, and a clutch of weekly papers across the region.
The businesses being sold, 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 Liverpool Echo, said the acquisition would complement its existing portfolio reinforce its commitment to regional media.
Blog post: Editor Marc Reeves on the acquisition. Click here
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.”
The transaction is due to complete on 28 March 2010.
