JPIMedia Publishing has been acquired by David Montgomery’s National World plc for £10.2m.

JPIMedia had announced it had placed itself for sale earlier in the year and the deal will see National World acquire the entire business, along with its subsidiaries.

In an update to shareholders, National World said the acquisition of JPIMedia totalled £10.2 million. Of this sum £5.2 million will be satisfied in cash on completion. There will be two deferred payments of £2.5 million each on March 31, 2022 and March 31, 2023.

National World also said it will provide £6.5 million working capital facilities to JPI Group after completion.

National World is led by news industry veteran David Montgomery. He is a former editor of the News of the World and chief executive of Mirror Group and Local World.

Mr Montgomery (pictured above) said: “National World is a public company set up to invest in and develop local publishing to create a modern sustainable model. We are very proud to be associated with JPIMedia’s 100 historic brands and recognise the dedication of all the staff who serve their communities in print and online, particularly in current challenging times.

National World is committed to growing the company through the enhancement of content and technology and we look forward to discussing these plans with everyone and, once possible, visiting all locations.

“On a personal note I have been associated with some JPIMedia titles since I was a student journalist and witnessed over decades how their great and honest reporting has contributed to democratic and societal development – a tradition that National World will continue to champion.”

David King, chief executive of JPIMedia, said: “The publishing industry is undergoing a fundamental shift and being part of National World will help sustain our business and local media for the longer term.”

National World also reported that Mark Hollinshead will be appointed chief commercial officer and Daniel Cammiade will be appointed as a non-executive director.

The sale follows a separate transaction in October which saw JPIMedia sell its three printing plants to Daily Mail publisher dmg media.