Partner Article

Trinity Mirror acquires 20% of Local World assets

Newspaper group Trinity Mirror, which owns over 130 regional titles and national papers including the Daily Mirror and The People, has acquired a 20% equity interest in Local World Limited.

The newly formed Local World company was created by Daily Mail owner, Northcliffe Media, and Iliffe News and Media to acquire and operate their regional publishers.

Wednesday’s announcement outlined the deal in which Northcliffe and Iliffe’s publishing assets will be acquired by Local World after valuations of approximately £100m for the enterprise.

The newly created firm estimated revenues of £273m and profits of £21m on a pro forma basis for the 12 months up to the end of September 2011.

Trinity Mirror will pay £14.2m for its 20% equity stake after its interest in the deal was announced in late October.

The parties involved expect the agreement to reach completion by the end of the year, while Trinity Mirror announced “necessary employee consultation procedures” would take place.

Chief Executive of Trinity Mirror, Simon Fox, commented: “Alongside our continued focus on the creation of One Trinity Mirror, our investment in Local World reinforces our commitment to local media and enables us to participate in a compelling business opportunity with the consolidation of two strong local media businesses.

“In addition, the investment builds on Trinity Mirror’s existing commercial services for the provision of contract printing and national advertising sales to Northcliffe. We look forward to working with the Local World team.”

Local World said it will publish 16 daily papers alongside 36 weekly paid titles and 40 weekly free titles, as well as two Metro franchises and several niche print products.

The firm said its audience currently stands at around six million people, while its 63 local websites attracts a monthly audience of seven million unique users.

This was posted in Bdaily's Members' News section by Miranda Dobson .