Yellow Pages buys Trader Canada for $760M
Yellow Pages Group said Monday it is buying Classified Media (Canada) Holdings Inc., which is also known as Trader Canada, for $760 million in cash.
Trader Canada publishes 137 publications and nine websites covering three main areas â automotive, real estate and general merchandise. Its main brands include Auto Trader, Auto Hebdo, The Bargain Finder and Home Renters' Guide.
Trader Canada accounts for roughly 36 per cent of the revenue of the seller, Trader Classified Media N.V.
In December 2005, Yellow Pages bought Trader Media Corp., which covers the Ontario market, for $436 million.
"The acquisition of Trader Canada represents the critical step in the creation of a national platform for verticals following the acquisition of [Trader Media Corp.] earlier this year," said Marc Tellier, the president and CEO of Yellow Pages.
He said the combination of Trader Canada and Trader Media Corp. (TMC) will give Yellow Pages a national presence with more than 200 publications and 20 websites.
The combination of Trader Canada and TMC generated revenues of approximately $297.5 million and adjusted earnings before interest, taxes, dividends and amortization of $90.9 million last year.
Yellow Pages Group is 96 per cent owned by Yellow Pages Income Fund (TSX:YLO.un) .
Units of Yellow Pages fell 45 cents to close at $16 on the TSX.