Gordon and Gotch acquires IMD

Gordon and Gotch (a fully owned subsidiary of PMP) acquires IMD

Auckland, 31 August 2009 - Listed printing and media services company PMP Limited (ASX:PMP) today announced that it had entered into an agreement to acquire the magazine distribution business Independent Magazine Distributors (IMD) via Gordon and Gotch NZ Ltd.

Gordon and Gotch is New Zealand's largest independent magazine distributor, with more than 2500 titles in its stable. IMD was formed 11 years ago to manage the distribution needs of independent New Zealand publishers in an environment where magazine distributors at that time were owned by publisher houses. This is now no longer the case.

Gordon and Gotch general manager Anthony Aitken says the purchase is a natural fit for Gordon and Gotch and PMP.

"We are delighted to be able to extend the services we offer our publishing customers in New Zealand. IMD brings valuable magazine titles to Gordon and Gotch, which we will look to expand through the Gordon and Gotch network," says Mr Aitken.

"Gordon and Gotch have been supplying the New Zealand market with fantastic magazines for more than 110 years and this acquisition is further demonstration of our long term commitment to the magazine market in New Zealand.

"We look forward to growing the business further through improved service offering and infrastructure investment."

IMD's managing director Simon Gleeson says that the time was right to bring the two companies together to create an entity that will have greater advantages for the customers of both companies.

"Gordon and Gotch have the market coverage and resources to maximise the sales of our publishers' titles.

"In the current economic climate, it was going to be difficult to invest in our business at the levels required to grow our customers' businesses for the future - an opportunity that Gordon and Gotch is able to offer."

Mr Aitken says a key element of the deal is a focus on providing a high level of service to Gordon and Gotch's new and existing publisher customers.

"We have the size and scale, as well as the people and processes, to offer a high level of service. In particular for our retail customers, our size and systems means that we can offer reduced complexity with the consolidation of deliveries to their stores."

Mr Aitken says it will be business as usual for IMD's publishing customers as the operation moves to Gordon and Gotch.

PMP New Zealand general manager, Peter Browne, says the acquisition of IMD continues PMP's investment in New Zealand and represents a natural and logical extension of PMP's mission to be the leading supplier of marketing and printing services to publishers in New Zealand.

PMP Limited is one of the largest integrated media providers in Australasia, providing services in printing, database marketing, digital premedia, design, letterbox distribution and magazine distribution.

ENDS

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