The deal comprises seven newspapers, including the world's oldest continuously published English-language newspaper, the News Letter in Belfast, as well as the Derry Journal and the Donegal Democrat.
Trinity Mirror will sell its shares in Century Press and Publishing and The Derry Journal to a newly formed company, Local Press Limited. The deal will be subject to the approval of the Irish Competition Authority, with Trinity stating that it expects to complete the sale by early 2004.
Selling the newspapers to 3i will avoid potential regulatory hurdles that could have been faced had Trinity Mirror sold to one of the media groups that were reportedly interested in the titles.
Other names that were connected with the sale were Sir Anthony O'Reilly, the Irish media baron and owner of Independent News & Media; Thomas Crosbie Holdings, owner of the Irish Examiner; David Palmer, former chief executive of the Financial Times; Scottish Radio Holdings; and the Ulster Unionist MP David Burnside, who has previously bid for the Belfast Newsletter.
Sly Bailey, chief executive of Trinity Mirror, announced the sale of the newspapers after a strategic review at the company, which also owns the Daily Mirror and the People.
She said: "These are tremendous assets to own but for Trinity Mirror there was limited strategic fit. We were pleased with the high level of interest in these titles, and believe we have achieved a good price and realised value for our shareholders by their disposal."
Trinity Mirror said that the proceeds of the sale will be exempt from corporation tax, and will be used to pay off debt.
3i said that it would be backing the existing management to grow the titles, and that there were opportunities to consolidate across the Irish market.
Robin Marshall, a director of 3i, said: "They are a talented and dynamic team who have a significant track record of success. The economy in the North of Ireland is experiencing strong growth, and successfully run local newspapers will undoubtedly benefit."
Further details about the ongoing strategy will be available after the deal is approved. Marshall said that Jean Long, currently managing director of the Daily Journal, will become managing director of Local Press Ltd.
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