Metal Bulletin to pay $11 million for publishing assets of Cahners division.

Metal Bulletin plc, the specialist publisher and information services group, announced last Friday that its U.S. subsidiary entered into an agreement to acquire the publishing assets of the Cahners Business Information Metals Group, a subsidiary of Reed Elsevier, for $11 million ([pound]7.6 million).

The flagship title of this group is the journal considered to be Metal Bulletin's main competitor globally, American Metal Market, the North American metals industry's domestic "bible."

Cahners's metal properties are uniquely complementary to those of Metal Bulletin, which already publishes a strong portfolio of publications for the global metals industry observed Grant Draper, director of The Jordan, Edmiston Group Inc., which helped Cahners complete the divestiture.

"Cahners publishes three specialist metals industry titles, both on and off line, and organizes related conferences. Its operations are predominantly focused on the North American market where American Metal Market is acknowledged as the leading publisher of daily industry news and free-market price indicators," Draper said.

The strength of these metals properties in North America is complementary to Metal Bulletin's existing operations where Metal Bulletin is the leading publication for metals industry news and price information in the European, Asian, and Latin American markets.

As part of a more specialist publishing group, the assets to be acquired will benefit from the significant opportunities to cross-sell products and services to a larger customer base, Metal Bulletin's publishing expertise in this market and economies of scale, Draper said. "While the current year will be one of integration, the acquisition is expected to be earnings enhancing in 2002."

During the year ended December 31, 2000, Cahners metal titles produced a divisional contribution (excluding property costs and central services overheads) of $3.4 million on turnover of $14 million. The total consideration of $11 million will be payable in cash on completion--funded from the group's extended bank facilities.

The acquisition is conditional upon the obtaining of certain third-party consents, but it is expected that the contract will become unconditional by the end of May, Draper said.

"The acquisition of American Metal Market and other Cahners titles will consolidate our position as the leading information provider to the global metals industry, and strengthen our existing portfolio of metals industry publications and services and give us critical mass in the important North American metals market," said Tom Hempenstall, chief executive of Metal Bulletin.

"This will allow the group to offer an enhanced range of products and services to a broader and more geographically diverse audience. The pending acquisition is consistent with our strategy of acquiring complementary high-quality informaton businesses," Hempenstall said.