Johnston Press has this morning announced that it is buying Regional Independent Media, publisher of 53 regional newspapers, in a £560 million deal.
The announcement ends over a year of uncertainty surrounding the future of RIM. Trinity Mirror, Guardian Media Group and US publisher Gannett have all been named as possible buyers at various times over the past 18 months resulting in a number of referrals to the Competition Commission. Johnston Press have now consolidated their position as the fourth largest newspaper publisher in the UK with more than 250 regional titles.
Commenting on the acquisition, Roger Parry, chairman of Johnston Press, said: “This is a transforming acquisition for Johnston Press at a fair price. RIM is an excellent fit with Johnston Press and significantly strengthens our position in the consolidating UK regional newspaper market.”
The sale does not include three RIM subsidiaries; the online customer relations management company atmyside, the co-operative direct mail business Direct Media Solutions and the business magazines and online database of Newsco-Insider.
Chris Oakley, chief executive of RIM, said: “Our managers and staff have made the RIM titles leaders in editorial quality, in innovation and in profit generation. I know Johnston Press is fully aware of the strengths of the titles it is acquiring, the principal strength being the quality and commitment of its staff.”
Shares in Johnston Press had risen from an opening price of 342˝p to 365p by 10.30am, following the announcement
Subscribers to MediaTel Insight can access this report in full, along with more national and international media analysis, forecasts and news. For subscription details please visit the site.
