Guardian Media Group plc (GMG) has agreed to sell its regional media business (GMG Regional Media) to Trinity Mirror plc for a total consideration of £44.8 million.
GMG Regional Media, which publishes 32 newspapers and associated websites, is formed of two operating businesses: MEN Media and S&B Media. MEN Media publishes 22 titles in the North West of England, including the flagship Manchester Evening News and Wilmslow Express.
S&B Media publishes 10 titles in the South of England, including the Surrey Advertiser and Reading Post. Channel M, the TV station for Greater Manchester, and the company’s local newspapers in Woking are excluded from the sale.
The businesses made an operating profit of £nil in the 12 months to December 2009 and have gross assets of £8.7 million. The transaction is due to complete on 28 March 2010.
Mark Dodson, chief executive of GMG Regional Media, has decided to leave the business. David Sharrock, currently chief operating officer of GMG Regional Media, has been appointed as managing director of MEN Media. S&B Media will be managed as part of Trinity Mirror’s existing publishing business in the South of England. Ruth Spratt, managing director of MEN Media, has also decided to leave the company.
Carolyn McCall, chief executive of Guardian Media Group, said: "The Manchester Evening News and its sister titles have made a huge contribution to the fortunes of the Group for the best part of a century. GMG would like to pay tribute to all the staff for their hard work and achievement in a sector dealing with structural change as well as economic downturn."
"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 one of the UK’s biggest regional publishers, is best placed to develop this business in a market that is likely to consolidate further. We are therefore confident that this decision is in the best long-term interests of the regional business and its staff, as well as delivering real value for the Group."
