NEWSPAPER group Johnston Press is to buy Regional Independent Media, owners of the Yorkshire Post, for £560m.

Johnston said the acquisition of RIM, which is the fifth largest regional newspaper publishing group in the UK by circulation, would consolidate its position as the UK's fourth largest regional newspaper group.

Roger Parry, chairman of Johnston, which owns North-East titles the Sunderland Echo, Hartlepool Mail and Shields Gazette, said: "This is a transforming acquisition for Johnston Press at a fair price. RIM is an excellent fit with Johnston Press and significantly strengthens our position in the consolidating UK regional newspaper market."

Tim Bowdler, chief executive of Johnston, said the group did not plan to close any papers being acquired.

He said: "We don't expect there to be a huge number of redundancies at all. We are talking tens of jobs."

Following the deal, Johnston will own 250 titles and employ 7,500 staff.

RIM owns 53 titles, comprising six daily, 29 weekly paid-for and 18 weekly free titles. Its flagship title is the Yorkshire Post.

RIM, which is strong in Yorkshire and the North West of England, also owns and operates printing facilities in Leeds, Sheffield and Harrogate. In addition to newspapers, its operations include a small portfolio of magazines and specialist titles, as well as a direct marketing business.

It is also a principal shareholder in a consortium which operates 2BR FM, a radio licence that started broadcasting to the Burnley and Pendle area of Lancashire in 1999.

Last year it made operating profits of £40.2m, a net loss of £6.7m, and had a turnover of £175.3m.

RIM was formed in February 1998 when a syndicate of investors led by private equity firm Candover bought some of the regional newspapers and related businesses of United Provincial Newspapers Limited, formerly owned by United News & Media (now United Business Media).

Johnston said the deal would generate annual cost savings of about £9m and would provide opportunities for operational synergies through purchasing and printing.

The news came as Johnston announced its full-year results, which showed pre-tax profits for the year to December 31 rose to £68.5m, from £65.5m the previous year.

Turnover was £300.6m, up from £292.2m.

Mr Parry said this year had begun encouragingly and early trading results had been ahead of expectations.

"The modest rate of advertising revenue growth seen in the second half of 2001 has continued into the early weeks of 2002.