TWO GALWAY-BASED cousins, Iain and David Burke, are set to net €6-7 million from the sale of the Tuam Heraldregional newspaper to the Midland Newspaper Group (MNG), controlled by Northern Ireland-based businessman John Taylor, also known as Lord Kilclooney.
It is understood the Burkes, who own the entire business between them, have agreed to sell the Herald Printing & Publishing Company Ltd for some €6-7 million in cash upfront.
In addition, they will retain about €588,000 in cash balances held by the weekly newspaper. They will also keep ownership of its property, Herald House, on the Dublin Road in Tuam, which was valued last year on its books at just under €1 million. The building will be rented to Mr Taylor after the sale is completed.
First published in 1837, the Tuam Heraldhad a weekly circulation of 9,355 in the January to June period of this year, according to the Audit Bureau of Circulations. The newspaper is also available online free of charge.
It was one of the few family-owned newspapers left in the west of Ireland. Iain and David Burke, both in their 50s, are the third generation involved in the business.
David Burke, managing editor of the paper, owns about 57 per cent of the business and will net some €3.5 million from the sale.
Iain Burke, the company's financial controller, will earn more than €2.5 million. It is understood both will remain after the sale.
The Burkes were advised by law firm Mason, Hayes Curran and corporate finance house Raglan Capital. Mr Taylor was advised by LK Shields Solicitors.
The Tuam Heraldemploys 15 staff and its latest accounts show it had accumulated profits of €1.1 million at the end of December 2007. It is believed to have annual turnover of €1.8 million.
The acquisition, subject to approval from the Competition Authority, strengthens Mr Taylor's position in the regional newspaper market in the Republic. MNG already owns the Midland Tribune, which was acquired in 2004, and the Athlone Voice, which it took over a year later. Its other titles include the Roscommon Champion, the Longford Newsand the Tullamore Tribune. It will now have a combined weekly circulation in the Republic of about 35,000.
In a statement, Mr Taylor said: "All the papers in the Midland group will help each other. There will be no change in the ethos of the Tuam Heraldor in its mission to promote and serve Tuam and northeast Galway."
Mr Taylor, a former deputy leader of the Ulster Unionist Party, also controls the Alpha Newspaper Group, which publishes 18 local papers in Northern Ireland. He is an investor in six radio stations up north and has commercial printing interests. Midland employs 340 staff and produces 150,000 newspapers a week.
