British media group Daily Mail & General Trust is selling its U.S. retail trade show management business to private equity firm Providence Equity Partners, Reuters reported Tuesday. The firm is paying about 106 million pounds ($174.2 million) for the business, George Little Management. The transaction is expected to complete in late September.
(Reuters) – British media group Daily Mail & General Trust agreed to sell its U.S. retail trade show management business for about 106 million pounds ($174.2 million) to private equity firm Providence Equity Partners, as it plans to focus on fewer events with stronger prospects.
The group, which publishes the Daily Mail newspaper, said in June that it had put up for sale its U.S. retail trade show management business George Little Management (GLM).
At least two analysts said that while the price was slightly lower than what was expected, it was a sensible move for the group, which has a market value of 1.49 billion pounds, to sell off its non-core assets.
In June, the Financial Times newspaper had said the business could sell for around $200 million.
“While the disposal is small in relation to the size of the overall group, we think the news will be meaningful for sentiment, in showing DMGT management as an active manager of the portfolio,” Citigroup said in a note.
Once the deal is completed, Daily Mail expects to receive 90 million pounds in cash, which would be used to reduce its net debt. The group expects an interest-bearing note for the remaining amount.
The transaction is expected to complete in late September.
GLM events include the flagship biennial New York International Gift Fair at the Jacob Javits center in New York.
Daily Mail’s shares, which have shed nearly a quarter of their value over the past three months, were up about 1.7 percent at 384.2 pence at 1003 GMT on Tuesday on the London Stock Exchange.
($1 = 0.608 British Pounds)
(Reporting by Anirban Sen in Bangalore; Editing by Maju Samuel)