Johnston Press has conditionally acquired the assets and titles of the Scottish Newspaper operations of Archant for a cash consideration of £11.2 million funded from existing bank facilities.
The business comprises eight weekly titles, of which three are paid-for newspapers circulating in the North East of Scotland around Peterhead and Fraserburgh and five are on free distribution in central Scotland around Glasgow, Ayrshire, Lanarkshire and Paisley.
In the year ended 31 December 2006, the business generated revenues of £6.95 million.
The acquisition is conditional on clearance from the Regulatory Authorities and on completion would become part of the Johnston Newspapers (Scotland) Division.
Tim Bowdler, chief executive of Johnston Press, said: “We are delighted to have been able to reach agreement with Archant to acquire these titles. This is an attractive portfolio of weekly newspapers which fits well with our existing titles in their respective areas.
“We look forward to working with the Scottish Archant publishing team to build on an already successful business for the benefit of readers and advertisers in the local communities they serve.”
In a recent trading update, Johnston Press revealed that like-for-like print advertising revenues decreased by 8.0% for the five months ended 30 November 2006 (see Ad Revenues Continue To Decline For Johnston Press).
Related Links
