Marketing - Written by Sarah Howard on Tuesday, February 9, 2010 11:32 - 0 Comments
Guardian Media Group sells regional business
In the latest UK marketing news, the Guardian Media Group (GMG) is reported to have sold its regional media business arm to Trinity Mirror.
The Guardian has announced that the deal is worth £44.8m, with £7.4m in cash and Trinity Mirror releasing GMG from a £37.4m print contract for Manchester Evening News (MEN).
The deal is due to be finalised on the 28 March according to Brand Republic but does not include the Manchester local TV station Channel M and two local papers in the Woking area who it hopes to find an additional buyer for.
The transaction will give Trinity Mirror control of the lucrative MEN media group which consists of both the Manchester Evening news and free paper the Metro, as well as 20 additional newspapers in the North West. It will also cover S&B Media, who publish 10 papers in the South, such as the Surrey Advertiser and the Reading Post.
The deal will mean some restructuring, with the chief executive of GMG Regional Media, Mark Dodson and the managing director of MEN Media, Ruth Spratt set to leave the company. Meanwhile, David Sharrock who has been chief operating officer at GMG Regional Media, will take over as managing director of MEN Media.
Carolyn McCall, chief executive of the Guardian Media Group said of the deal: ”GMG is mandated to secure the future of the Guardian and we have a strong portfolio which has to be in the right shape to achieve that goal.. We believe Trinity Mirror is best placed to develop GMG Regional Media in a market that is likely to consolidate further”.
Meanwhile, Sly Bailey, chief executive of Trinity Mirror, described GMG Regional Media as ”a perfect strategic fit” for the group and realises their goal of becoming ”a multi-media business of real scale”.
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