Yellow Pages buying AutoTrader publisher for $436M
Yellow Pages Group said Monday it is buying Trader Media Corp. for $436 million in cash and equity.
Currently owned by Fraser Francis Ltd., Trader Media has over 65 publications and websites, including the used vehicle classified ad magazine AutoTrader, and several real estate magazines such as Renters News, Resale Homes and New Homes & Condos. Trader Media's main market is in Ontario.
Yellow Pages Group said it will acquire the publishing company for $135 million in cash and $301 million worth of exchangeable units. Those units are eligible to be converted into units of Yellow Pages Income Fund (TSX:YLO.un). The units amount to a four per cent ownership stake in the income fund.
Yellow Pages said Trader Media generates about $133 million in annual revenues and $43 million in pre-tax operating profits.
Trader Media "brings significant value to YPG to help us continue to grow in the advertising market," said Yellow Pages CEO Marc Tellier.
Founded in 1975, Trader Media employs about 775 people.
Units of Yellow Pages Income Fund were up 63 cents at $16.38 on the TSX.