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Johnston Press agrees to buy 45 local weeklies

Johnston Press looks set to add 45 local weekly newspapers to its portfolio which are currently owned by Scottish Radio Holdings.

Emap has agreed to buy the the shares of SRH that it doesn’t already own in a deal valuing the company at £391m.

Once the deal is completed Emap will sell the group’s newspapers to Johnston for £155m.

SRH’s newspaper division, Score Press, publishes 45 local weekly newspapers, 16 of which are in Scotland, 24 are in Northern Ireland and five are in the Republic of Ireland.

In a statement announcing the acquisition, Johnston Press said: “Johnston Press believes that Score Press represents an attractive and complementary addition to Johnston Press’ existing portfolio.

“In addition to strengthening Johnston Press’ focused regional newspaper franchise in the consolidating UK market, the transaction will establish a strong presence for Johnston Press in well-established and profitable markets in both Northern Ireland and the Republic of Ireland.

“The acquisition will also provide opportunities for operational and purchasing synergies.”

Score Press’ key assets include Morton Newspapers in Northern Ireland, Kilkenny People Holdings, Leitrim Observer and Longford Leader in the Republic of Ireland and Angus County Press, Galloway Gazette and Stornoway Gazette in Scotland.

In the last financial year to September 30, 2004, it reported revenues and operating profit of £35.1m and £11.2m respectively, and had net assets of £55.5m.

Last month SRH announced its interim results for the six months to March 31 and reported Score Press revenues of £18.7m and operating profit of £6.1m, up by seven per cent and 15 per cent respectively on the same period in the prior year.

SRH also has a wide interest in commercial radio, with 22 wholly-owned and two partly-owned radio services, and operates six digital radio multiplexes.

Emap’s chief executive, Tom Moloney, said: “This transaction enables us to create the highest quality independent local radio business, reaching all of the UK’s major conurbations and delivering a strong position in the Republic of Ireland.

“This is an important step in Emap’s radio strategy, one that creates real value and leaves us well placed to make the digital step that will be so important in establishing leadership of UK commercial radio.”

SRH’s chief executive, David Goode, said: “Combining Emap’s radio business with SRH’s network of 22 highly rated stations in the UK and Republic of Ireland will create a strong national radio group with exciting prospects.

“Score Press is a highly profitable and well run portfolio of weekly newspapers. It represents a very valuable asset and a good fit with Johnston Press’s extensive newspaper interests.”

Emap’s business activities focus around three main areas, running more than 150 consumer magazines in the UK, France and around the world; more than 200 business to business events, magazines and conferences and 19 UK local analogue radio stations, seven digital music TV channels and one of the biggest digital radio networks in the UK.

Its audited accounts for the year ended March 31 showed Emap’s turnover was £1,068m on which it earned pre-tax profits of £112m, and had net assets of £283m.