Telegraaf Media Groep N.V. (TMG) today signed a Letter of Intent with Mecom Group plc (Mecom) for the sale of Media Groep Limburg B.V. (Dagblad De Limburger and Limburgs Dagblad), Grafisch Bedrijf Media Groep Limburg B.V. (Nieuwsdruk Limburg newspaper printer’s) and Uitgeversmaatschappij De Trompetter B.V. (publisher of door-to-door publications).
An enterprise value of € 200 million was agreed for the three divisions. In connection with the advice required from the Works Councils and permission from Mecom’s shareholders, it will take several weeks to complete the transaction.
Ad Swartjes, CEO of TMG: ‘The publishing houses and the printer’s in Limburg are all wonderful companies with solid track records. Economies of scale play an increasingly important role for publishers today and in the future. Because of the distance between Limburg and TMG’s activities in Western Holland, TMG is unable to scale up its activities in Limburg as required. TMG’s business in Limburg will soon be in the hands of Mecom, a new strategic investor. We are convinced that the publishing houses and printer’s will be in good hands and that they can look forward to a bright future.’
David Montgomery, Executive Chairman of Mecom: ‘We are delighted to have agreed to acquire these high quality assets from TMG. The Limburg titles are the leading titles in their region of the Netherlands and are very well run and profitable businesses. We look forward to working with local management to develop the titles further, ensuring their continuing editorial independence and strengthening their attractiveness to advertisers. This acquisition is fully consistent with Mecom’s pan-European strategy”.