Independent News & Media (INM) is selling its UK regional newspaper assets to Newsquest for £60 million, the group announced along with its financial results this morning.
INM, publisher of the
Independent national paper in the UK, has reached an agreement with Newsquest’s US parent, Gannett, to sell the 29 paid-for and 16 free weekly publications for a price which is 13.7 times the division’s earnings.
The regional business generated pre-tax profits of €6.9 million on turnover of approximately €27 million in the year to December 2002. It employs around 275 people in the UK.
INM says that this sale is an important part of the company’s recapitalisation programme. On completion, it will net INM £59.5 million after expenses, which will be used for future financing.
Paul Davidson, chief executive of Newsquest said: “These titles will combine superbly with our existing publishing and printing operations. We share the strong commitment of the management and employees of the Independent Regionals Business to provide quality, local newspapers to readers and advertisers in their communities.”
The deal is subject to the approval of the secretary of State for Trade and Industry.
