Trinity Mirror seals deal to buy Local World

Newspaper group Trinity Mirror has reached an agreement to acquire the remaining 80% stake in Local World Holdings it does not already own for £154.4m in a deal that will create the UK’s largest regional news publisher.

Trinity said the acquisition will create a stronger and more resilient organisation, enabling the group to accelerate its strategic transformation.

In addition, it expects the transaction to be earnings-enhancing in the first full year following the acquisition, and to deliver cost synergies of around £10m to £12m in the second full-year of ownership.

Chief executive Simon Fox said: “Local World is a business we know and respect and by combining it with Trinity Mirror we will create an organisation of scale, with the talent and financial capacity to invest and adapt to the rapidly changing media landscape. It is a vote of confidence in local press and its future.”

Trinity said the consideration will be paid as a combination of cash and shares and will be funded through £67.3m of existing cash resources and a new £80m five-year amortising debt facility.

The company will also satisfy £5.3m through the issue of 3.37m new shares and a placing of 22.4m shares.

At 1120 GMT, Trinity Mirror shares were up 8.4% at 174p.