Johnston Press PLC Regulatory News (JPR)

19 Dec 2005 11:12

Johnston Press PLC19 December 2005 For Immediate Release 19 December 2005 Johnston Press plc ACQUISITION OF SCOTSMAN PUBLICATIONS LTD The Board of Johnston Press plc ("Johnston Press") announces today that it hasentered into an agreement with the shareholders of The Scotsman Publications Ltd("Scotsman Publications", "the Company") to acquire the entire issued sharecapital of the Company. Scotsman Publications publishes the Scotsman newspaper (a morning paid fortitle), www.scotsman.com (the award winning website), Scotland on Sunday (aSunday paid for), the Edinburgh Evening News (an evening paid for) and theEdinburgh Herald & Post series (a weekly free). The Company has a total weekly paid for circulation of 840,000 and a weekly freedistribution of 254,000. Scotsman.com registered over 3 million monthly uniqueusers and over 20 million page impressions in its most recent ABC audit and hasbeen voted Britain's best newspaper website by the Newspaper Society in twoconsecutive years. Johnston Press believes that Scotsman Publications representsan attractive and complementary addition to its existing print and onlineportfolio as well as providing opportunities for operational synergies. Under the terms of the agreement, Johnston Press has agreed to acquire theCompany for a cash consideration of £160m on a debt free basis and thisconsideration will be satisfied from Johnston Press banking facilities. JohnstonPress expects that the acquisition will be earnings enhancing (excluding theimpact of acquisition related exceptional items) within the first year. In the last financial year ended 31 December 2004, Scotsman Publicationsreported Profit before interest and tax of £7.7m on turnover of £63.5m, withgross assets of £127.5m. Commenting on the deal, Tim Bowdler, Chief Executive of Johnston Press said,"Scotsman Publications comprises one of Scotland's highest quality newspaperportfolios and The Scotsman and its website Scotsman.com are amongst Scotland'sbest known newspaper and internet brands. With its Scottish heritage, JohnstonPress is particularly pleased to have reached agreement to acquire ScotsmanPublications". Andrew Neil, Publisher of the Press Holdings Group, owners of The ScotsmanPublications Limited (TSPL), said: "It has been a privilege to own and run aprestigious flagship title like The Scotsman, along with its successfulassociated titles, these past 10 years. But we are delighted to have reached anagreement with Johnston Press which not only recognises the value andimprovements we have added to the titles over the decade but secures theirlong-term future. The Scotsman and its sister papers will now have the advantageof being part of a larger Edinburgh-based group. We wish the new owners, thenewspapers and their dedicated staffs every success in the future." Enquiries:Johnston Press plcTim Bowdler 0131 225 3361Stuart Paterson Buchanan CommunicationsRichard Oldworth 020 7466 5000Suzanne Brocks This information is provided by RNS The company news service from the London Stock Exchange