Trinity buys MEN Media but leaves Channel M on shelf

This is a huge story for the North West - will be interesting to see what happens with the buying points.

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Trinity Mirror Plc today said it was buying GMG Regional Media from Guardian Media Group Plc for nearly £45m.

It said the acquisition, which includes MEN Media Ltd, publisher of the Manchester Evening News "reinforces Trinity Mirror's commitment to regional media and complements the group's existing portfolio and marketplaces".

Trinity owns the Liverpool Echo and Daily Mirror and is expected to make efficiency savings from combining the Manchester and Liverpool businesses.

MEN Media publishes 22 titles and GMG regionals also owns S&B Media which publishes the Surrey Advertiser and Reading Post. T

rinity Mirror will not be acquiring Channel M, the TV station for Greater Manchester and the two local newspapers in Woking.

GMG made an operating profit of nil in the 12 months to December 2009 and has gross assets of £8.7m. The total consideration is £44.8m is made up of £7.4m cash and £37.4m from the release of a long term printing contract.

The deal is expected to complete on 28 March 2010.

Sly Bailey, Chief Executive, commented: "GMG Regional Media is a perfect strategic fit for our Group. This acquisition, which includes the Manchester Evening News with its proud and rich journalistic heritage, together with the weekly titles and associated websites extends our reach across print and online and is a further step towards our strategic goal of creating a multi-media business of real scale."

Carolyn McCall, Chief Executive, Guardian Media Group, commented: "GMG is mandated to secure the future of the Guardian in perpetuity, and we have a strong portfolio which has to be in the right shape to achieve that goal. The Group board and the Scott Trust have made the decision to sell in light of these strategic objectives. GMG Regional Media is a good business and a publisher of important newspapers. However, we believe Trinity Mirror, as the UK's biggest regional publisher, is best placed to develop this business. This is an agreement that delivers real value for both parties."