Trinity has confirmed a deal to buy Local World for an EV of £220m. Overall it is the highly positive deal we had hoped for: a low-risk consolidation deal, at an attractive price (5.2x EBITDA), delivering a stronger asset base and excellent financial returns for shareholders (we estimate 15-20% EPS enhancement and a post-tax ROI of 17%-25%). The most interesting aspect, in our view, is the decision to part-fund with a 10% equity placing. This was not necessary from a financing perspecti
