Yellow Media to sell Trader Corp to equity funds for about $745 million
28 Mar 2011
Montreal-based media and marketing company Yellow Media Inc said it will sell its unit Trader Corp to funds advised by private equity firm Apax Partners, for about $745 million ($758.6 million) in cash, to focus on its core business.
"We want to focus our efforts on the acceleration of our digital transformation," Yellow Media said in a statement.
Trader Corp brings out about 160 publications and 22 websites on automotive, real estate, general merchandise and employment.
However, Yellow Media said the real estate, employment and LesPAC.com businesses have been excluded from the proposed sale and will continue to be owned by Yellow Media.
Trader will continue to own and operate Canadian automotive and generalist online properties as well as retain its interest of about 30 per cent in Dealer.com, the US website for auto dealers.
London-based Apax Partners invests in telecommunications, information technology, retail and consumer products, media, healthcare, and financial and business services.
The proceeds from the sale will be mainly used to pay off debt, Quebec-based Yellow Media said.
The deal is expected to close in June. TD Securities Inc and Morgan Stanley acted as financial advisers to Yellow Media.
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