Regional newspaper publisher, Johnston Press, has announced plans to acquire the entire issued share capital of publishers of the Scotsman newspaper and www.scotsman.com, Scotsman Publications.
The deal will see Johnston purchase the company for a cash consideration of £160 million, with the newspaper publisher claiming the acquisition will be “earnings enhanced” within the first year.
Tim Bowdler, chief executive of Johnston Press commented: “Scotsman Publications comprises one of Scotland’s highest quality newspaper portfolios and The Scotsman and its website Scotsman.com are amongst Scotland’s best known newspaper and internet brands. With its Scottish heritage, Johnston Press is particularly pleased to have reached agreement to acquire Scotsman Publications.”
Andrew Neil, publisher of the Press Holdings Group, owners of The Scotsman Publications Limited (TSPL), continued: “It has been a privilege to own and run a prestigious flagship title like The Scotsman, along with its successful associated titles, these past 10 years. But we are delighted to have reached an agreement with Johnston Press which not only recognises the value and improvements we have added to the titles over the decade but secures their long-term future.”
He added: “The Scotsman and its sister papers will now have the advantage of being part of a larger Edinburgh-based group. We wish the new owners, the newspapers and their dedicated staffs every success in the future.”
Earlier this month Johnston released a downbeat trading update for the second half of the year, reporting a dip in recruitment advertising revenues of 22.9% year on year.
Overall, Johnston’s advertising revenues have fallen by 6.7% year on year, with the year to date described as one of “progress,” while 2006 is expected to be “satisfactory” (see Sky Close To Completing EasyNet Deal).
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