North Media A/S acquires eight local newspapers in

23 October 2013

Company announcement no 09-13

Today North Media A/S signed a contract with Berlingske Media A/S for the acquisition of eight local newspapers based in Copenhagen and Frederiksberg, the total circulation of which is 286,000 newspapers a week.

With this acquisition, North Media A/S, which publishes for example Søndagsavisen and several other newspapers, becomes the single largest publishing house in Copenhagen and Frederiksberg, with more than half a million newspapers on a weekly basis.  Following the acquisition, North Media A/S will be publishing 1.6 million newspapers per week nationally.

“Those eight newspapers are well-established companies that fit perfectly into North Media's strategy to strengthen and improve its market position in the fields of door-to-door distributed free newspapers and distribution”, says Lars Nymann Andersen, CEO.

”With this acquisition, we take an active step in consolidating the market after many years of fighting among newspaper companies in addition to considerably strengthening our position. We will be benefitting from economies of scale while ensuring the basis of all of our newspaper activities”, says Lars Nymann Andersen, Group CEO.

The acquisition comprises Frederiksberg Bladet, Vesterbro Bladet, Valby Bladet, Vanløse Bladet, City Avisen and Nørrebro/Nordvest as well as a 70% stake in the company publishing the local newspapers of Amagerbladet and Østerbro Avis of which 60% is acquired from Berlingske Media A/S and 10% from the existing minority. The many Copenhagen and Frederiksberg readers of those newspapers will not notice the change since the newspapers will be published by the same people as before. 

The acquisition price of those eight newspapers totals DKK 69.5 million to be paid in cash. The payment will be effected by way of a share deal as well as a transfer of assets. The acquisition is expected to complete on 1 November 2013.

In connection with the acquisition, North Media A/S has entered into a put / call option for the remaining 30% stake in the company that publishes Amagerbladet and Østerbro Avis. The options can be exercised in tranches after the presentation of the annual accounts for 2015 and 2018. The purchase price will depend on future earnings, but is expected to be DKK 10-20 million.

The acquisition is expected to increase the Group's earnings by approx. DKK 75 million annually. Similarly, after implementation Group EBITDA is expected to go up by approx. DKK 20 million a year and Group EBIT to go up by approx. DKK 10 million a year. The acquisition is not expected to affect the consolidated results for 2013.

Please contact Lars Nymann Andersen, CEO, at +45 39 57 70 00, for further information.

Yours faithfully North Media A/S

Lars Nymann Andersen Chief Executive Officer

Visit us at http://www.northmedia.dk

This document is an unofficial translation of the Danish original. In the event of any inconsistencies the Danish version shall apply.