Business
Smiths News acquires assets f
Smiths News acquires assets f.
About this update from Smiths News Plc
[{"type":"text","content":"\n RNS Number : 7538W Smiths News PLC 03 August 2009 \n \n\n\nSmiths News PLC\nSmiths News acquires certain assets from Dawson Holdings\n\nSmiths 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. \n\nThe 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.\n\nIt is also anticipated that approximately 1,800 of Dawson's distribution and head office staff will transfer to the Group under TUPE obligations.\n\nThe 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.\n\nIn 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. \n\nMark Cashmore, Chief Executive of Smiths News commented:\n\n'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.'\n\nEnquiries:\n\n\n\n\n\nSmiths News PLC\nMark Cashmore, Chief Executive\n\n\n\nTel: 01793 563641\n\n\n\n\nAlan Humphrey, Finance Director\n\n\n \n\n\n\n\n \n...