Fairfax sells Gordon & Gotch to PMP for $4.4m

Fairfax NZ Ltd has sold its magazine marketing and distribution business, Gordon & Gotch, to Australia's PMP Ltd for $4.4 million and "an appropriate adjustment for working capital," it said today.

In a joint statement from the companies, Fairfax NZ chief executive Brian Evans said the business was no longer regarded as a "core component of the company's future activities".

PMP is Australia's biggest commercial publisher and purchased Gordon & Gotch's Australian operations in 2000.

PMP NZ chief executive Rodger Shepherd said the group would "use synergies between the two operations to develop and explore new business opportunities in both markets".

Mr Shepherd said it would be "business as usual" for Gordon & Gotch customers and the all the company's employees would be offered employment "at no less favourable terms than they currently enjoy".

Last month PMP which prints and distributes magazines, retail catalogues and directories, reported a 13 percent lift in full year net profit to $A17.5 million ($NZ19.2 million).

Fairfax NZ will remain a core client for Gordon & Gotch which currently distributes Fairfax's Sunday Star-Times and Sunday News, as well as magazines including TV Guide, Cuisine and NZ House and Garden.

- NZPA