THE NEW YORK TIMES COMPANY ANNOUNCES AGREEMENTS TO BUY TWO WHOLESALER OPERATIONS
THE NEW YORK TIMES COMPANY ANNOUNCES AGREEMENTS
TO BUY TWO WHOLESALER OPERATIONS
NEW YORK, Feb. 5 /PRNewswire/ -- The New York Times Company announced agreements today to purchase two New York City metropolitan- area wholesale newspaper distribution businesses. The announcement was made by Walter E. Mattson, president of The New York Times Company. The businesses, the Metropolitan News Company and the Newark Newsdealers Supply Company, are being acquired from companies controlled by Robert B. Cohen, one of the leading distributors of newspapers and magazines in the United States.
"These acquisitions represent an important opportunity for The New York Times Company to expand its activities into the wholesale newspaper distribution business, and we are confident that in operating these businesses we can continue to improve newspaper distribution in the New York metropolitan area for the many publishers served by these businesses, including The Times," Mattson said.
"Before the completion of these acquisitions can occur, it will be necessary for us to reach a new, mutually satisfactory labor agreement with the drivers' union that represents employees who work in these wholesale newspaper distribution businesses. In the unlikely event such an agreement cannot be reached, we have retained the right to assign our agreements to purchase these businesses to a third party," Mattson said.
The primary distribution area served by the Metropolitan News Company is Manhattan, Queens and Brooklyn.
Newark Newsdealers Supply Company covers much of northern New Jersey, Rockland County and Staten Island. Together, these distributors handle 46 percent of The Times's daily circulation and 41 percent of its Sunday circulation in New York City and the suburban areas. The wholesalers also handle distribution for many other newspapers including The Wall Street Journal, the Daily News and the New York Post.
The purchases are expected to close in the second quarter of 1992.
Late in 1991, The New York Times reached an agreement with the Newspaper & Mail Deliverers' Union (N.M.D.U.) with respect to the opening of a new state-of-the-art production and distribution facility in Edison, N.J. That agreement, which is subject to ratification by N.M.D.U. members, provides for employee buyouts and contributions to the union's welfare fund in return for efficient operating conditions at the new plant.
/CONTACT: Nancy Nielsen, 212-556-7078, William Adler, 212-556-7077, of The New York Times/
(NYT) CO: The New York Times Company ST: New York IN: PUB SU: TNM SM -- NY076 -- 7345 02/05/92 16:11 EST