Guardian Media Group and Apax land Emap B2B division

by Daniel Farey-Jones, Brand Republic 21-Dec-07, 15:30

LONDON - Emap has agreed to sell its business-to-business division to Guardian Media Group and Apax for around £1.3bn, only days after stating the business was off the auction block.

The price includes £1bn for Emap's shares and an additional sum for its debt, which stood at £384m as of September 30. It is unclear how much of Emap's debt GMG and Apax are taking on.

The surprise development means the end of Emap, which began life in 1947 as East Midlands Allied Press.

On December 7, it agreed to sell its consumer magazine and radio divisions to German publishing company H Bauer for £1.14bn.

The Bauer deal is conditional on the approval of Emap shareholders at a meeting in January and today's B2B deal is dependent on the other deal going through.

Emap said the two deals will result in a return to shareholders of 931p a share.

The company's share price rocketed 20% from yesterday's close to 915p as of mid-afternoon today.

Guardian Media Group and Apax saw off competition from two private equity pairings, Candover and Cinven, and Providence and Permira.

Carolyn McCall, chief executive of Guardian Media Group, said: "The acquisition meets our requirements in terms of diversifying GMG's media interests, in line with our commitment to guarantee the long-term financial security of the Guardian."

Irina Hammers of Apax said the pair plan to extend Emap's franchises internationally.

Emap's business-to-business assets include Construction News, Drapers, Retail Week and the Cannes Advertising Festival.

Comments

DECLAN GANE - 09/01/2008

Events Industry Alliance group chief executive, Trevor Foley says, “Throughout the protracted and well documented breakup of the Emap group, it was rightly the B2B events arm that was extolled as the jewel in the crown. It is therefore gratifying to hear Eden Bidco (the GMG and Apax bid joint company), recognise ‘an asset of exceptional quality, uniquely positioned in markets with strong underlying fundamentals’ which made Emap a ‘compelling investment’. The EIA welcomes Apax and GMG’s planned support for the management's strategy of solid organic and selective acquisitive growth and looks forward to working together to grow the live event marketing medium.”