Trinity Mirror pays £41.2m into Northern & Shell Pension Scheme in takeover deal

Written by Theo Andrew

Trinity Mirror has agreed to pay £41.2m upfront into the Northern & Shell Pension Schemes (NSPS) as part of its £126.7m acquisition of the publishing business.

The £41.2m one-off payment into the scheme is part of an agreed recovery plan, which will also see payments totalling £29.2m enter the scheme up until 2027, amounting to £57.5m after tax.

A statement from Trinity Mirror said it will make annual contributions of £1.9m each year from 2018 to 2020; increasing to £4.1m per annum between 2021 to 2023; £3.3m per annum between 2024 to 2026 and a final £1.3m in 2027.

According to the group, NSPS had a total deficit of £31.3m on an IAS19 basis at 31 December 2016, and a valuation deficit of £63.6m at their last actuarial valuation.

Trinity Mirror closed all three of its pension schemes to future accrual in 2010, while Northern & Shell closed the final of its three schemes in the same year.

Northern & Shell Media Group holds a number of national titles including the Sunday Express, Daily Express, Daily Star and OK! magazine.

Trinity Mirror will fund the cash element of the deal with a £75m amortising loan facility.

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