Market research group VNU has agreed to sell its directories unit - including Ireland's Golden Pages - to venture capital groups Apax and Cinven for €2.075 billion as it focuses on high-growth businesses.
VNU, whose Nielsen Media business is the undisputed leader in measuring television ratings in the United States, will use at least half the proceeds of the sale to repay debt and strengthen its balance sheet, the company said in the statement.
It expects to close the sale by the end of 2004.
VNU initially acquired a stake in Golden Pages when it bought the World Directories business of ITT in 1998 for $2.1 billion (€1.7 billion). At the time, ITT controlled 37 per cent of Golden Pages, with the balance held by Telecom Éireann.
In 2002, VNU secured full control of Golden Pages from Eircom for €185 million.
The world directories unit produces telephone directories in print and online and is the market leader in each of the seven countries where it does business - Belgium, the Netherlands, Ireland, Portugal, Romania, Puerto Rico and South Africa.
In June, VNU announced its intention to sell the directories division, which produces 125 directories and has a circulation of 40 million copies. In 2003, it reported operating profit of €211 million on sales of €492 million.
VNU's unit has seen its core profit margins shrink due to weakening business in countries such as Belgium and the Netherlands. The price tag values the business at about 10-times enterprise value divided by expected 2004 core earnings.
The deal, one of the largest European buyouts of the year, attracted all the big-name buyers, including The Blackstone Group, Carlyle, BC Partners and a team of CVC Capital Partners with Permira. - (Reuters)
