Pitch Best Mid-Cap Corporate Deal M&A Awards Belgium 2019: Mediahuis – Independent News & Media

Name of the deal:       Mediahuis acquires Independent News & Media        
Date closed:                30th April 2019
Published value:         €146 million    
Buyer:                          Mediahuis
Target:                         Independent News & Media
Seller:                          Independent News & Media shareholders    
M&A Database:          https://mena.nl/deal/11659

Visit MA-Awards.be for more information and availability of dinner tables or tickets. 

Pitch

Description of the deal 
Publisher Mediahuis takes over the Irish media group Independent News & Media (INM) for 145.6 million euros (in cash).

Deal rationale:
Mediahuis further increases its footprint beyond Benelux in an interesting newspaper market that has a size that is playable for a company as Mediahuis.

INM is also improving. Media House already has a strong track record in newspaper and digital media development in Europe, which can provide INM with the best opportunity to achieve its strategic objectives, while continuing to enable it to deliver journalism of the highest quality to the island of Ireland and its readers abroad.

What is the impact of this deal for the company?
With the purchase of INM, Mediahuis suddenly becomes the largest player on the Irish newspaper market. Irish Independent is not the only news outlet that falls under the INM umbrella, Sunday Independent and Sunday World, the two largest Sunday newspapers in the country, are also part of INM. The same applies to two national tabloids and twelve regional weekly newspapers. The publisher achieved a turnover of 191 million euros in 2018.

The Belgian Mediahuis owns among others, De Standaard, Het Nieuwsblad and Gazet van Antwerpen. Through acquisitions, it has also become the owner of Dutch newspapers such as NRC Handelsblad, De Telegraaf and Metro.

What is the impact of this deal for the direct stakeholders?
Major shareholders in INM are Denis O’Brien and Dermot Desmond (together 45%). They therefore cash around 70 million euros. The company was listed on the stock exchange; this deal takes it off the stock exchange. The "delisting" therefore also generates money for shareholders who had invested via the stock exchange. 

What is the impact of this deal on the society?
As a publisher, Mediahuis believes unreservedly in independent and quality journalism, as well as in strong and relevant media that makes a positive contribution to people and society. 

Why does this deal deserve a nomination?
Mediahuis pulls the “Dutch trick” in non native language market. Chutzpah!

Comments Panel of judges
Mediahuis has already built up a leading role in the Dutch market in recent years. With the acquisition of Independent News & Media, the first step towards the Anglo-Saxon market has been taken. According to the Panel of Judges, this ambitious step is a logical one: Mediahuis immediately becomes the market leader in a manageable market. In addition, the deal is characterized by efficiency. Although many parties are involved in acquisitions in the sensitive media sector, there was relatively little time between the announcement and the closing of the deal. The Panel of Judges expects that the experience that Mediahuis has gained with the digitization of the media offering can be of value in the Irish market which is still lagging behind on, for example, the Belgian market.