Midland Independent Newspapers
In November 1991 Midland Independent Newspapers (“MIN”) was purchased by Cinven and Candover from an American newspaper entrepreneur who needed cash to support other business interests. MIN owned several regional paid-for and free titles, including the Birmingham Post, the Evening Mail and the Coventry Evening Telegraph. Its income derived from newspaper sales and from advertising.
The business was purchased during a time of general economic difficulty. Advertising sales, particularly in the key recruitment sector, had fallen. Cinven believed that by making cuts in overheads and capitalising on new, already installed production equipment significant value could be created.
By 1994 the business had grown in turnover and operating profit, an achievement that augured well for a profitable exit. The business was successfully floated on the London Stock Exchange in March of that year.
Multiple returned on investment: 2x