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Telegraph deal in the bag for Smiths News
03.04.09
Newspaper and magazine wholesaler Smiths News today won its fifth major contract in a month, signing a £136 million-a-year deal to distribute the Daily and Sunday Telegraph until 2014.
The new contract, £53 million larger than the existing one, is another blow to rival Dawson Holdings. Its shares slumped last week after it lost major contracts with Associated Newspapers and magazine distributor Comag.
Those contracts were split between Smiths and the other big player in the news distribution business John Menzies, which today gained a £76 million contract with the Telegraph.
Dawson has called in lawyers to examine the legality of the contract shifts, which appear to leave Menzies dominant in Scotland and the North of England and Smiths taking much of the South.
Smiths News chief executive Mark Cashmore said: "This announcement gives further momentum to our business and validates our strategy of investment and continued focus on efficiency."
