Family owned poster contractor Trainer has been bought by Scottish Radio Holdings (SRH), the commercial radio and newspapers group, for 27.5m.
The deal makes multimillionaires of Pat Trainer, who founded the company 30 years ago, and his son Chris, Trainer’s managing director for the past 14 years. Chris Trainer, 32, will replace his father as chairman, while Pat remains as a director and consultant.
The Glasgow-based billboard company, which recently announced a joint venture with French street furniture giant JC Decaux, made pre-tax profits of 1.4m on turnover of 5.3m in the year to December 31 1998, against 1m the previous year on turnover of 4.7m.
SRH, which is making its first foray into the outdoor market, owns 15 commercial radio stations, including Radio Clyde and Radio Forth, and 31 local newspapers.
Chris Trainer says: “SRH is very much a Scottish company and it was time to choose a partner. The Trainer brand remains the same and the management remains the same.”
Trainer operates 800 48-sheet and 96-sheet panels and 300 six-sheets in Scotland. It also has estate agent hoardings and sells sports venue advertising.
Under the terms of the deal, SRH bought all Trainer’s share capital with 28.2m in cash and 1m in new ordinary shares in SRH, offset by Trainer’s existing net cash balances of 1.7m.
SRH is the second Scottish media owner to enter outdoor. In February, Scottish Media Group paid 35m for six-sheet contractor Primesite. In another development, the More Group is to handle the sales of Jazz FM, after its parent company Clear Channel bought a 30 per cent stake in the radio station.
Media Analysis, page 14