Bosses at Hove-based specialist printer Wyndeham Press have agreed an £80.6 million takeover deal with an Icelandic investment company.

The printer of titles such as Marie Claire and GQ and closer to home the Sussex Enterprise magazine Business Edge announced that Reykjavik-based Dagsbrun will pay 155p per share for control of the group The offer looks good on paper 21.6 per cent higher than the share price prior to the bid talks being revealed and should gain the support of shareholders. Thordis Siguroardottir, chairwoman of Dagsbrun, said the deal would provide the firm with a "strong foothold in the UK from which to further our media business".

She said: "We've been looking for a nice investment opportunity in the UK and this one certainly meets our expectations in terms of revenue and growth."

Dagsbrun had built up extensive operations in media, entertainment, telecommunications and print in Iceland and the Faroe Islands over the past five years and now intends to expand overseas with this deal being the first step, she added.

Wyndeham, headquartered at Audley House, Hove Street, is one of the UK's leading printers of specialist magazines, commercial literature and direct mail.

The group said the offer represented fair value for its shareholders.

Chairman Bryan Bedson said: "Wyndeham should enjoy enhanced stability and access to financial and other resources to enable it to drive its strategic development and grow to the benefit of employees, customers and other stakeholders."

The group employs 1,800 people at sites around the UK including Southwick, West Sussex, Milton Keynes, Manchester, Grimsby, Sheffield and Maldon in Essex.

Wyndeham has undergone a major overhaul since 2003 when profits fell by almost a third to £4.4 million as a downturn in advertising took its toll.

It decided to get out of trouble by investing heavily in new printing equipment and streamlining its various operations.

Last November it announced halfyear profits had jumped 22 per cent to £3.8 million on a small rise of turnover from £69 million to £71 million.

Wyndeham, whose commercial customers include Tesco and Thomas Cook Holidays, said it would be in a better position to develop as part of a larger group.

Wyndeham's shares have grown by a fifth since the start of the year, boosted in part by a three-year deal worth £20 million it won from publisher Emap, and on speculation that it was a potential takeover target.

Dagsbrun, a former telecoms firm turned investment company, joins compatriots Baugur and Kaupthing in acquiring UK assets.

Retail investment group Baugur has snapped up a large tranche of the High Street through deals for Hamleys, Iceland, Whittard of Chelsea, Oasis and Karen Millen, while banking firm Kaupthing counts the Singer & Friedlander merchant bank among its assets.

Tuesday, March 28, 2006