Hollick buys US publisher for $920m
Friday 30 April 1999
Lord Hollick, chief executive of UN&M, said the deal did not put it under any financial pressure to sell its flagship Express newspaper titles and added that the group was on the lookout for further acquisitions.
The US company that UN&M is acquiring, CMP Media, owns a number of leading computing and electronics titles including Information Week, Computer Reseller News and Electronic Engineering Times and also operates 40 online sites under the CMPNet brand.
The business, 68 per cent owned by the Leeds family, will be merged with UN&M's trade show and publishing arm, Miller Freeman, to create a high- tech business to business information company.
Lord Hollick also said it was considering a tracker listing on the US Nasdaq index and a flotation of the CMPNet business.
The price paid by UN&M represents two-times CMP's sales and 31 times its earnings last year before interest, tax, depreciation and amortisation of $29m. Restructuring costs of $65m will be taken as an exceptional charge in UN&M's accounts but savings of $40m are forecast by 2000, making the acquisition earnings enhancing.
The deal will yield a $625m windfall for the Leeds family.CMP was floated in the US for $500m two years ago.
The acquisition is the first major buy by UN&M since the end of 1996 and will leave UN&M with pounds 1.25bn debt. But Lord Hollick said he was interested in further acquisitions.
In particular, he would like to raise UN&M's stake in Channel 5. UN&M owns 29 per cent but there has been speculation the 18 per cent stake held by venture capital fund Warburg Pincus is for sale. Lord Hollick said he had no plan to sell the Express titles. Outlook, page 19
- 1 Isis 'jihadi bride' claims forced sex with Yazidi girls is never rape because Koran condones it
- 2 Art Garfunkel calls Paul Simon a 'monster' with a Napoleon complex
- 3 Woman accidentally shoots herself in the head while posing for a selfie
- 4 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 5 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
Isis 'jihadi bride' claims forced sex with Yazidi girls is never rape because Koran condones it
Woman accidentally shoots herself in the head while posing for a selfie
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...