DMGT to net £106m from GLM unit sale

 
Steve Dinneen
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Daily Mail publisher DMGT has agreed to sell its US-focused events business George Little Management (GLM) to private equity outfit Providence Equity Partners in a deal worth £106m.

DMGT says it will receive £90m in cash, which it will use to reduce debt, and will take the remainder in the form of an interest-bearing note.

Barring any regulatory hurdles, the deal will close by the end of September.

GLM runs 15 major US events, including the New York International Gift Fair. Its events attract around 150,000 visitors a year.

The sale to the media-focused private equity firm follows a strategic review of the company launched in June.

Providence will purchase GLM through a new holding company led by Charles McCurdy, who most recently served as chief executive of Canon Communications.

Providence managing director Michael Dominguez said: “We believe there are significant opportunities to grow GLM’s tradeshow brands in the US and internationally both organically and through acquisition, as well as to develop exciting new digital and data services.”

Last month DMGT, which earns most of its money from its business-to-business operations, reported an improved outlook for its national newspaper division, with the decline in advertising revenue slowing.

ADVISER: THE JORDAN, EDMISTON GROUP

WILMA JORDAN

FOUNDER

DMGT opted for boutique financial advisor The Jordan, Edmiston Group to guide it through the transaction.

The New York investment bank specialises in media, communications and marketing deals, recently advising AdJug in its takeover by digital marketing firm IgnitionOne and Big Fuel in its sale of a majority stake to French firm Publicis Groupe.

The Jordan, Edmiston Group was founded and is still run by Wilma Jordan. Since its inception in 1987 it has advised on more than 500 transactions.

Jordan shot to prominence when she participated in the sale of Esquire Magazine Group, in which DMGT was a shareholder.

She also serves as a director of magazine publisher Guideposts and was formerly on the board of independent Nasdaq-listed Lin Television. She is also a director at magazine publisher Guideposts.