THE company which owns the Bolton Evening News announced today that it has bought the Westminster Press Group for £305 million.

Newsquest Media Group, which is backed by American investment house Kohlberg Kravis Roberts & Co, has won an industry race to buy Westminister Press from Pearson plc. The 60 WP titles will now be merged with the 120 owned by Newsquest, creating a combined company with a turnover of over £280 million and assets of over £500 million.

It becomes one of the UK's leading regional newspaper companies.

Westminster Press titles include the Northern Echo at Darlington, the Evening Argus at Brighton, the Oxford Mail and the Telegraph and Argus at Bradford.

The deal, which is subject to approval by the Monopolies and Mergers Commission, has been assisted by support from Cinven, an independent venture capital company.

Mr Jim Brown, Chairman and Chief Executive of Newsquest, said today: "We are delighted to acquire the Westminster company which has so many quality and well-known newspapers in its group.

"They have splendid newspapers with a long history within their communities and we have no doubt the business can be grown and full advantage taken of the new developments and opportunities that are opening up in the regional newspaper field.

"The deal has been done with enthusiastic backing of KKR and we also have the support of Cinven.

"We have very powerful backers - right from the point when we made the management buy-out of our company six months ago, KKR had promised their support to substantially grow the company and build extra value.

"They have certainly kept their word." Mr Brown went on: "There isn't any overlap between titles but there are obvious synergies which will benefit both companies.

"In the North-west, the Midlands and the South both Newsquest and Westminster Press have strong titles which will strengthen our influence in these regions."

WP has recently undertaken severe cost-cutting exercises in all its divisions and many of its newspapers are suffering substantial circulation decline.

Mr Brown said: "We are going to have to work very hard with the titles and help the editors to overcome their difficulties with good editorial and promotional support.

"Pearsons have decided to go down the electronic route, mostly in television, but we are optimistic about regional newspaper publishing and are committed to developing what is now a very substantial business."

Clifton Robbins, General Partner of KKR, said: "With the impressive Newsquest management team we have seen there is undoubtedly potential for growing the business and regional newspapers have particularly good prospects for growth. "We look forward to unlocking the Westminster potential once it comes alongside the Newsquest company."

Newsquest acquired the Bolton Evening News and other titles when Anglo-Dutch giant Reed Elsevier sold Reed Regional Newspapers.

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