UK - Private equity in race for £1.5bn Northcliffe papers

Rob
09 February 2006

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A mixture of private equity and trade buyers are preparing to submit second round bids for Daily Mail and General Trust's regional newspaper business, according to press reports.

The Northcliffe group, owner of more than 100 titles including the Nottingham Evening Post, was put up for sale last year. The division, which reported operating profits of £101.6m last year, is valued by analysts at up to £1.5bn and a deal is expected to be completed next month.

It is reported that CVC and Candover have teamed up to make an offer and are considered leading contenders in an auction that could present regulatory problems for trade suitors. Chris Oakley, an experienced newspaper executive, has been recruited to run Northcliffe if the bid succeeds. Reports also listed venture capital group Providence as an interested bidder for the company while the potential trade buyers reportedly preparing offers are the US newspaper publisher Gannett and Johnston press, owner of the Yorkshire Post and more than 300 other regional titles.