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"Rare opportunity to acquire quality titles"

The £560m deal for Johnston Press to buy RIM will substantially increase the size of Johnston and create one of the UK’s largest regional newspaper groups, publishing more than 250 titles across England and Scotland.

What Johnston heralds as a “rare opportunity to acquire such a number of quality titles”, is expected to be finalised on April 12, following an Extraordinary General Meeting of Johnston Press earlier in the same week.

The company already has Government consent for all but one of the newspapers covered in the deal – and has had since November 2000, with the remaining permission expected to be given before April 12.

The purchase is part of a long-term plan by Johnston to ensure it is involved in the process of consolidation of the nation’s regional press.

Tim Bowdler, chief executive of Johnston Press, said: “RIM is a business we have long admired as we have its excellent portfolio of titles.

“We are delighted to have agreed this deal which will create one of the most exciting and dynamic newspaper publishing groups in the regional press. We look forward to working together with RIM management and staff to build on the complementary strengths of our existing businesses”.

“Industry consolidation and ownership changes have been a feature of the local and regional pressover the past few years.

“This process has seen the share of newspaper ownership in the hands of the five largest publishers increase to 61 per cent. But, despite this trend towards greater consolidation, the industry remains highly fragmented in comparison to other media with over 90 separately owned publishers throughout the UK.

“Whatever the regulatory environment, further ownership changes and industry consolidation appear inevitable and Johnston Press remains determined to play an active part in this process.”

Since the beginning of 1999, there have been nine major transactions in the UK regional newspaper sector, worth more than £3bn – but there are still more than 90 publishers and some 1,200 titles.

A Johnston report into the acquisition said: “Previous transactions undertaken by the group have demonstrated that value can be created from combining businesses.

“At the same time, Johnston Press believes that consolidation will continue to deliver benefits to both readers and advertisers as a result of the increased ability of larger groups to commit investment to improve the quality of acquired titles.

“Johnston Press has been an active participant in consolidation of the industry. In addition to a number of smaller acquisitions, Johnston Press has grown substantially through the acquisitions of Portsmouth & Sunderland Newspapers plc, acquired for £266m in 1999, and the regional newspaper interests of EMAP plc, acquired for £211m in 1996. These acquisitions were complementary to the group’s existing businesses and their successful integration and performance since purchase has contributed to Johnston Press’ improved margins.

“This has further reinforced Johnston Press’s commitment to growth through a combination of strategic acquisitions and organic development.”

RIM is the fifth largest regional newspaper publishing group in the UK by circulation.

Its newspaper publishing boasts a portfolio of 53 titles comprising six daily, 29 weekly paid-for and 18 weekly free titles.

The aggregate weekly circulation of RIM’s titles is approximately 3.3m, attracting a total readership of approximately 7.3m.

Its flagship publication is the Yorkshire Post which attracts a daily readership of more than 180,000 from an average daily circulation of more than 65,000 copies. RIM also publishes the Yorkshire Evening Post, one of the top ten selling evening regional titles in the UK, which attracts a daily readership of more 230,000 from an average daily circulation of some 85,000 copies.

Publications also comprises other daily titles including The Sheffield Star, Lancashire Evening Post and The Blackpool Gazette.

The company has other interests and by the time the sale is completed, RIM will have disposed of its 56 per cent shareholding in atmyside. Direct Media Solutions and Newsco Insider will become separate, independent companies.

Click for news on Johnston’s record profitsand our original story on the RIM purchase.

Do you have a story about the regional press? Ring 0116 227 3122/3121, or email
[email protected]

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