Local World has been purchased by Trinity Mirror in a deal worth £220M.

When Local World was created three years ago, it was valued at £100M.

However in 2015, Local World has been purchased by Trinity Mirror in a deal which values the regional publisher at £220M.

Trinity Mirror aims to cut costs on Local World's existing regional newspapers. The company aims to cut £12M from Local World's budget.

Around £3.2M of the cuts will come from 'content generation'.

 

A 20% stake in Local World was already owned by Trinity Mirror, but a statement said that the company would buy the remaining 80% of Local World for £154.4M.

The combination of Local World and Trinity Mirror will make it the UK's biggest local newspaper publisher.

The combined weekly circulation of all titles will be 9M. This will include 36 daily newspapers, 88 weekly paid-for newspapers, 43 weekly free newspapers, five Sunday newspapers, and eight franchises.

The acquisition of Local World means that the company will be triple the size of the two next biggest regional publishers: Johnston Press and Newsquest.

Both Johnston Press and Newsquest have a combined weekly print circulation of 5M copies.

 

"The acquisition values Local World on a debt-free cash-free basis at £220 million. The purchase price for the 80.02 per cent. shareholding not already owned by Trinity Mirror is £154.4 million, being the Sellers' total share of the equity value of £193 million. Trinity Mirror will also assume debt, working capital and debt-like items of circa £27 million and will incur some £6 million of transaction costs at completion which together with the equity consideration represents total consideration of £187.4 million." said a Trinity Mirror announcement.