The sale of SMG’s publishing division to Gannett UK has been cleared by the Department of Trade and Industry (DTI) and is expected to complete shortly, the group said today.
As announced at the end of last year (see
Gannett Secures SMG Publishing Deal For £216m), US group Gannett will pay £216 million for SMG Publishing. Gannett owns and operates the Newsquest regional newspaper group in the UK.
SMG says that the successful completion of this disposal will sharpen SMG’s focus on national advertisers and strengthen its balance sheet. The proceeds of the sale will be used to significantly reduce the group’s debt.
Andrew Flanagan, chief executive of SMG, said: “We’ve achieved an excellent deal for an excellent business at a price that was well ahead of expectations. I’m confident that the business will continue to thrive under its new owner. Delivery of this transaction will provide us with both regulatory and financial flexibility and we’ll be well placed to capitalise on the opportunities that the Communications Act promises to present.”
