Sale of 'Sligo Champion' could fetch €15m for its owners

The Sligo Champion newspaper has been put up for sale by the Townsend family. It is understood that the title could fetch up to €15 million for the owners, Niall and Michael Townsend, writes Ciaran Hancock.

Raglan Capital, a corporate finance house set up recently by Cathal Friel and Mark O'Donovan, is handling the sale. Bids are being sought by December 4th.

The Sligo Champion is one of the few remaining independent titles in the Irish market following years of consolidation.

It is expected to attract interest from a number of groups, including Johnston Press, a UK media company with a large stable of regional newspaper titles in Ireland; Dunfermline Press, owner of the Meath Chronicle and the Anglo Celt; and the Alpha Newspaper Group, which is run by former Ulster Unionist politician John Taylor and owns papers on both sides of the Border.

Others likely to run the rule over the business include Thomas Crosbie Holdings (TCH), publisher of the Irish Examiner; the Irish Times; and Sir Anthony O'Reilly's Independent News & Media. It might also prove attractive to private equity groups here and in the UK.

Founded in 1836, the Sligo Champion had a circulation of 12,574 a week in the January to June period, according to figures from ABC.

It is understood that Champion Publications achieved a pretax profit of just more than €1 million on turnover of some €3.8 million in 2006. It employs more than 20 staff, and the sale includes a printing business.

Niall Townsend (55) is the company's majority shareholder, chairman and managing director. Michael Townsend (75) is the paper's production director, and is expected to retire from the business.

The Sligo Champion competes with the Sligo Weekender, which is owned by TCH, and the Sligo Post, which is owned by River Media.

The global credit crunch raises questions as to the timing of the sale. However, Irish media assets are much sought after. In July, Denis O'Brien agreed to pay €200 million for Emap's three Irish radio stations.