By: E&P Staff Metro International S.A., the big global publisher of free commuter dailies, on Friday sold its Italian operations to New Media Enterprises S.r.L., which will continue to publish the papers under a franchise agreement with Metro.
Terms of the sale were not disclosed.
New Media Enterprises is controlled by Salvatore Puzzo, whose publishing experience includes Ciao 2001, Qui Giovani and Nuova Economia. The Italian commercial printer Litosud S.r.L. holds a minority stake in New Media Enterprises.
"The acquisition of Metro Italy represents a great and challenging opportunity for New Media Enterprises and provides a chance to cooperate with the leading international group in the free press,? Puzzo said. ?I'm confident that this cooperation shall be successful and will allow us to enhance the Italian operations of Metro".
Metro CEO and President Per Mikael Jensen said the deal is one of several transactions that Metro International has done in an attempt to consolidate in some European markets.
?The deal allows Metro International to continue to maintain its existing global reach and pan-European distribution platform which is important to our international advertisers,? he said in a statement. ?In addition to their experience and know-how, the new shareholders will benefit from the synergies with their existing operations and will therefore be in a good position to drive Metro Italy to profitability.?
Metro said the deal will have a positive cash flow impact for Metro International of approximately 1.5 million (US$2.14 million) this year.
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