Smiths News acquires assets f

RNS Number : 7538W

Smiths News PLC

03 August 2009

 



Smiths News PLC

Smiths News acquires certain assets from Dawson Holdings

Smiths News PLC ('the Group'), the UK's leading wholesaler of newspapers and magazines announces that, effective from 3 August 2009, following Surridge Dawson Limited ('Dawson') entering administration, the Group has acquired certain assets for a consideration of £1.5m. 

The Group will assume lessee responsibility for 20 of Dawson's depots as well as IT equipment, which together with the assets acquired, facilitate the early transfer of responsibility for supply of newspapers and magazines in those territories, previously supplied by Dawson, which were won by the Group in the recent round of contract renegotiations with publishers.

It is also anticipated that approximately 1,800 of Dawson's distribution and head office staff will transfer to the Group under TUPE obligations.

The Group expects to take responsibility for the supply of all newspaper and magazine product previously supplied by Dawson in these territories. The revenue associated with this will be an increase of circa £250m in the year to August 2010.

In order to implement these new arrangements in a very short time frame, the Group will be servicing the majority of contracts through Dawson's existing network and, at least initially, using their processes and technology. Consequently it is expected that the costs associated with the operation of this infrastructure will be higher in the short term than would typically be the case in the Group's current network. 

Mark Cashmore, Chief Executive of Smiths News commented:

'The arrangements we have announced today are important for our customers and for Smiths News. Although they are different to the phased introduction of contracts previously planned, we recognise that as market leader we have a wider responsibility to ensure the uninterrupted distribution of supplies on behalf of publishers, retailers and consumers. We are confident we now have a plan in place to achieve this.'

Enquiries:

Smiths News PLC Mark Cashmore, Chief Executive	Tel: [phone]
Alan Humphrey, Finance Director
Buchanan Communications Mark Edwards / Jeremy Garcia	Tel: [phone]

About Smiths News PLC

Smiths News PLC comprises Smiths News, the UK's leading wholesaler of newspapers and magazines and Bertrams, a leading UK book wholesaler. The Group was formed on 1 September 2006 following the demerger of WH Smith PLC.

Smiths News distributes newspapers and magazines on behalf of all the major national publishers as well as a large number of regional publishers. The business serves approximately 26,000 customers across England and Wales, supplying large general retailers as well as smaller independent newsagents. Smiths News has an approximate 40 per cent share of the magazine wholesaling sector and an approximate 40 per cent share of the newspaper wholesaling sector in the UK.

In addition to its distribution activities, Smiths News collects and processes returns, supplies sales information to publishers and provides a range of services for its retail customers.

Bertrams, which was acquired on 20 March 2009, supplies books to a mix of independent booksellers, on-line and multiple retailers, and libraries. Bertrams has an approximate 45 per cent share of the wholesale book market.

Smiths News PLC operates from 49 distribution centres across England and Wales, and employs 4,600 staff.

 

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