MONTREAL and HALIFAX – Yellow Pages Group said today that it has agreed to purchase all of Aliant Directory Services, which is a partnership currently held 87.14% by Bell Aliant and the balance by YPG, for $330 million in cash.
"We have been a motivated buyer for this asset over the past few years as part of our strategy to further strengthen our core directory business in Canada. The time has come for us to take full advantage of our in-depth knowledge of this business," said Marc P. Tellier, president and CEO of Yellow Pages Group, in the press release. "As managing partner of this business for the last 10 years, YPG is very pleased to become the sole owner and welcome our Aliant Directory Services colleagues to the YPG family."
"We are very pleased with the transaction we have negotiated with YPG," said Stephen Wetmore, President and CEO of Bell Aliant. "Our divestiture of this asset will allow us to focus on growth opportunities in our core businesses and increased value for our unitholders, with a seamless transition for our customers."
Aliant Directory Services is the incumbent directory publisher in the four Atlantic Provinces. The partnership publishes 35 directories with a total circulation of 1.8 million copies. Including these assets, YPG publishes more than 340 directories annually with a total circulation of 30 million copies.
In 2006, Aliant Directory Services generated revenues and EBITDA of approximately $65 million and $37 million respectively. It is anticipated that the transaction will close in early April, subject to satisfaction of the applicable conditions.
Yellow Pages Income Fund indirectly holds an approximate 97% ownership interest in Yellow Pages Group and Trader Corporation. YPG is Canada’s largest telephone directories publisher, annually publishing more than 340 Yellow Pages and residential directories.
