Johnston Press swoops for Scotsman group

Johnston Press has bought The Scotsman newspaper group in a £160 million sterling deal.

Johnston Press has bought The Scotsman newspaper group in a £160 million sterling deal.

The deal includes The Scotsman, Scotland on Sunday, the Scotsman website, the Edinburgh Evening News and the Edinburgh Herald & Post series.

Edinburgh-based Johnston Press acquired the company from the Press Holdings Group.

Britain's fourth-largest regional newspaper group, Johnston Press, last week received Competition Authority clearance for its €138.6 million takeover of the Leinster Leader group.

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With 24 titles, Johnston is one of the largest publishers in Ireland.

Tim Bowdler, chief executive of Johnston Press, said: "Scotsman Publications comprises one of Scotland's highest quality newspaper portfolios and The Scotsman and its website Scotsman.com are amongst Scotland's best known newspaper and internet brands.

"With its Scottish heritage, Johnston Press is particularly pleased to have reached agreement to acquire Scotsman Publications."

Last year Scotsman Publications reported profits before interest and tax of £7.7 million on turnover of £63.5 million, with gross assets of £127.5 million.

It has a total weekly paid-for circulation of 840,000, while the Scotsman website registers more than three million users per month.

Press Holdings, which is owned by the Barclay brothers, Sir David and Sir Frederick, also owns the Telegraph Group.

Press Holdings now intends to concentrate on a major expansion of online women's magazine handbag.com. The brand will be launched in the US and Australia, alongside a UK promotional push in the New Year.

Press Holdings had not been seeking a sale but Johnston Press approached with a "very attractive" deal, Press Holdings Group publisher Andrew Neil said.

The purchase price is almost twice what the company paid for The Scotsman Group - £85 million in 1995. Press Holdings will retain ownership of The Scotsman building, now valued at over £25 million.