St Ives Group to offload magazine business for £20m
Marketing company St Ives Group has agreed a conditional agreement to dispose of its magazine business in a £20 million deal.
The Board of the group has agreed to dispose of St Ives Peterborough, St Ives Plymouth, St Ives Roche and St Ives Web to Walstead Newco3.
Walstead Newco3, a subsidiary of Walstead Investments, will take over the running of the magazine business, with £15 million in cash being paid on completion of the deal, as well as £5 million in loan notes.
The magazine business is responsible for the production of weekly, monthly and specialist magazine titles, employing around 670 people across the three sites, with St Ives set to retain the ownership of the properties.
At the time of writing it was unknown whether any jobs would go as a result of the deal, although it is understood that shareholders have yet to lend their consent.
Miles Emley, chairman of St Ives, said: “I am very pleased to announce the disposal of the loss making Magazine business. The Disposal will allow a reduction in Group borrowings and enable the Board to focus on ensuring the continued success of St Ives.”
St Ives Group has implemented a group strategy of focusing on non-commoditised marketing, which will allow it to supply ‘value-added’ services such a logistical, fulfilment and marketing services.