GMG offloads regional business to Trinity Mirror
Guardian Media Group has sold its regional media business to Trinity Mirror in a deal worth £44.8 million.
Trinity will acquire GMG’s regional arm, which publishes 32 newspapers, including the Manchester Evening News and 21 other titles in the north-west of England, as well as 10 titles in the south of England.
However, the deal does not include GMG’s Greater Manchester TV station Channel M or its local Woking-based titles.
As a result of the sale, GMG Regional Media’s chief executive Mark Dodson and the managing director of MEN Media Ruth Spratt will leave the company.
Carolyn McCall, Guardian Media Group’s chief executive, said: “The Manchester Evening News and its sister titles have made a huge contribution to the fortunes of the group for the best part of a century.
“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 one of the UK’s biggest regional publishers, is best placed to develop this business in a market that is likely to consolidate further. We are therefore confident that this decision is in the best long-term interests of the regional business and its staff, as well as delivering real value for the group.”
Sly Bailey, chief executive of Trinity Mirror, added: “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 multimedia business of real scale.”
The deal, which will see GMG receive £7.4 million in cash and be relieved from its £37.4 million print contract, is due to be completed by the end of March.
According to the latest regional ABC figures, for January to June 2009, GMG reported a total circulation of 1.2 million copies, while Trinity Mirror recorded around 976,000 copies.
The new regional figures, for July to December 2009, will be available on MediaTel’s Press Database on February 25. See Newsline for full reports.