1 Feb 2018 07:00
This announcement contains inside information
Connect Group PLC
("Connect Group" or "the Group")
Update on the Disposal of the Books division to Aurelius Equity Opportunities
We refer to our announcement of 21 December 2017 that we had signed an agreement ("SPA") to dispose of our Books Division (the "transaction") to the listed pan-European mid-market investor Aurelius Equity Opportunities SE & Co. KGaA (together with its subsidiaries and affiliates, "Aurelius") and our subsequent announcement of 22 January 2018.
Connect Group announces that Aurelius failed to complete the transaction before the agreed deadline of midnight on 31 January 2018, as it was obligated to do under the terms of the SPA. As a result, Connect Group is considering with its advisers what action it will now take in light of this development.
The Books division continues to be classified as 'held for sale' for accounting purposes, and it remains 'business as usual' for its staff and management team as it focusses on delivering great service to meet customers' and publishers' needs and requirements, supported in the meantime by the Group's strengths and capabilities.
Enquiries:
Connect Group PLC Mark Cashmore, Chief Executive Officer David Bauernfeind, Chief Financial Officer |
01793 563641 |
www.connectgroupplc.com
| |
Buchanan Richard Oldworth / Jamie Hooper connect@buchanan.uk.com www.buchanan.uk.com |
020 7466 5000 |
About Connect Group
Connect Group PLC is a UK based specialist distributor and a leading provider of distribution solutions in complex and fragmented markets. The Group's networks are focused on serving high drop density early morning deliveries, and the demands of mixed and irregular sized freight.
The Group's core businesses are each leading players in their markets:
Early Distribution
Smiths News is the UK's largest newspaper and magazine wholesaling business with an approximate 55 per cent. market share. It distributes newspapers and magazines on behalf of the major national and regional publishers, delivering to approximately 27,000 customers across England and Wales on a daily basis. The speed of turnaround and density of Smiths News' coverage is critical to one of the world's fastest physical supply chains.
Pass My Parcel is a wholly owned Click & Collect service which leverages our combined networks to provide efficient solutions for online and high street retailers. Its network of parcelshops provides national consumer reach for deliveries and returns. Bespoke services for larger clients, serving their early morning and in-store requirements are a recent development in this rapidly evolving sector.
Dawson Media Direct supplies newspapers, magazines and inflight entertainment technology and content to over 80 airlines in 50 countries. Delivering to strict time windows with security accreditation, DMD serves the specialist needs of airlines and travel points in the UK and worldwide with printed and digital media.
Mixed Freight
Tuffnells is a leading distributor of mixed and irregular freight, serving approximately 5,000 small and medium sized enterprises across the UK. Its network of 37 depots collects and delivers mixed parcel freight consignments, specialising in items of irregular dimension and weight ("IDW"), examples of which include bulky items, building materials and automotive parts. With a mix of local and national clients, Tuffnells completes up to 70,000 daily deliveries, offering a range of timed services that are responsive to customer demand.