Company behind Daily Mirror to acquire Express publisher for nine figures
Trinity Mirror plc is set to acquire the publishing company behind the Daily Express in a nine-figure deal.
The firm this morning (February 9) announced proposals to buy the publishing assets of Northern & Shell for £126.7m.
The transaction covers Northern & Shell Network Limited (NSNL), a subsidiary of Northern & Shell Media Group Limited that contains the publishing assets of Northern & Shell and its subsidiaries.
Also included is International Distribution 2018 Limited and a 50% equity interest in Independent Star Limited.
In a statement, Trinity Mirror said the acquisition will create “a more robust revenue mix”. Circulation revenue would represent almost half of the newly enlarged group’s turnover, reducing its reliance on print advertising.
The firm said the deal will also deliver annualised cost synergies of £20m by 2020 and be earnings enhancing in the first full year of ownership.
Trinity Mirror chief exec Simon Fox said: “This deal is a really exciting moment in Trinity Mirror’s history, combining some of the most iconic titles in the UK media industry.
“It is good for our readers, good for our customers and good for our shareholders. Northern and Shell’s titles have a large and loyal readership, a growing digital presence and a stable revenue mix and offer an excellent fit with Trinity Mirror.”
Northern & Shell chairman Richard Desmond commented: “The Express Newspapers and our celebrity magazine titles have been a key part of the Northern & Shell portfolio for many years, and I am immensely proud of building them into one of the largest newspaper and magazine groups in the UK.
“Today’s transformational transaction is a logical and natural next step in the evolution and consolidation of the media sector and will create a larger and stronger platform serving all stakeholders.”
He added: “In Trinity Mirror we have a great partner, who will be an excellent steward of the business going forward and I am delighted to be able to retain an ongoing interest in the combined group.”