GMG Buys Up AutoTrader Publisher

Guardian Media Group has agreed a deal to take full control of Trader Media Group, publisher of the car magazine AutoTrader.

TMG which owns 70 publications in the UK and Ireland also has operations in Italy, Holland and South Africa.

As the company is valued at £1.14 billion, GMG will pay almost £600 million for the 52% of the group it does not already own. Venture capitalists BC Partners currently have a 46.8% stake with 5.2% held by management.

A previous attempt to buy out these shareholders failed leading to speculation that GMG might redirect resources to acquire Capital Radio.

Auto Trader is TMG’s flagship title and is published in 13 regional editions in the UK and the Republic of Ireland, with a weekly circulation of 340,000. The group also maintains Europe’s busiest automotive website, autotrader.co.uk, which carries over 250,000 cars for sale.

GMG recently posted strong financial results which showed advertising and circulation revenues up in the twelve months to March 2003. The company said that the takeover of TMG would secure the financial independence of The Guardian and The Observer.

Bob Phillis, chief executive of GMG and chairman of TMG commented: “TMG is a business that we know intimately and bringing ownership within GMG is a major strategic acquisition.”

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