New Media Announces Agreement to Acquire Morris Publishing Group Assets for $120.0 Million
August 09 2017 - 6:50AM
Business Wire
New Media Investment Group Inc. (“New Media” or the “Company”,
NYSE:NEWM), one of the largest publishers of locally based print
and online media in the United States as measured by number of
publications, announced today that it has agreed to acquire many of
the newspapers and related assets from Morris Publishing Group, LLC
(“Morris”) for $120.0 million.
New Media is acquiring many of the Morris portfolio of
U.S.-based newspaper assets located across Georgia, Florida, Texas,
Kansas, Arkansas, and Alaska. New Media is acquiring 79
publications including all eleven dailies, the largest of which are
The Florida Times-Union (44,750 daily circulation and 68,591 Sunday
circulation), The Augusta Chronicle (26,862 daily circulation and
31,682 Sunday circulation), and the Savannah Morning News (21,588
daily circulation and 26,048 Sunday circulation). In
addition to the print publications, the acquisition includes
Morris’s Main Street Digital group, substantially all weekly and
niche print products and all related websites and digital
operations.
“New Media is very excited to welcome the Morris publications
and their employees into our Company,” said Michael E. Reed, New
Media President and Chief Executive Officer. “For over 80 years,
the Morris family has built and operated an incredible collection
of local media assets. We are honored that the family has chosen us
to uphold the rich tradition of journalism and innovation they have
established. This transaction will expand our footprint into new
states and add some very attractive markets to our local media
portfolio. We see strong synergies between our two companies and
look forward to the value creation opportunity that will exist as
we combine the portfolios.”
William S. “Billy” Morris III, chairman of Morris Publishing,
will remain as publisher of The Augusta Chronicle and will oversee
editorial-page policy for the three Morris newspapers in Georgia.
Morris said, “Since 1929, the Morris family has had a great love
and passion for journalism and the local communities that they
serve. However, every newspaper company in America is battling
trends and redirected advertising dollars, so it is necessary for
newspapers to be part of a large newspaper group to build and
maintain the necessary resources to compete. We are deeply grateful
for the many friendships and business relationships we have enjoyed
for these many years and look forward to the impact the next
generation will make.”
The purchase price is within New Media’s stated acquisition
range of 3.5x – 4.5x the seller’s LTM As Adjusted EBITDA. The
transaction will be funded with cash on the balance sheet. We
expect it to be highly accretive to free cash flow with net
synergies of $10-15 million. We expect the transaction to close
early in the fourth quarter.
Moorgate Securities and Avondale Communications acted as
financial advisors to Morris Publishing Group in connection with
this transaction.
About New Media Investment Group
Inc.
New Media supports small to mid-size communities by providing
locally-focused print and digital content to its consumers and
premier marketing and technology solutions for our small and medium
business partners. The Company is one of the largest publishers of
locally based print and online media in the United States as
measured by our 125 daily publications. As of June 25, 2017, the
Company operates in over 555 markets across 36 states. New Media’s
portfolio of products, as of June 25, 2017, include over 630
community publications and over 550 websites, serve more than
225,000 business advertising accounts, and reaches over 21 million
people on a weekly basis.
For more information regarding New Media and to be added to our
email distribution list, please visit www.newmediainv.com.
Forward-Looking
Statements
Certain items in this press release may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements
regarding the anticipated transaction, including the closing,
timing of closing, estimated synergies and other potential benefits
of the anticipated transaction. These statements are based on
management’s current expectations and beliefs and are subject to a
number of risks and uncertainties. These and other risks and
uncertainties could cause actual results to differ materially from
those described in the forward-looking statements, many of which
are beyond our control. The Company can give no assurance that its
expectations will be attained. Accordingly, you should not place
undue reliance on any forward-looking statements contained in this
press release. For a discussion of some of the risks and important
factors that could cause actual results to differ from such
forward-looking statements, see the risks and other factors
detailed from time to time in the Company’s Annual Report on Form
10-K, Quarterly Reports on Form 10-Q and other filings with the
Securities and Exchange Commission. Furthermore, new risks and
uncertainties emerge from time to time, and it is not possible for
the Company to predict or assess the impact of every factor that
may cause its actual results to differ from those contained in any
forward-looking statements. Such forward-looking statements speak
only as of the date of this press release. The Company expressly
disclaims any obligation to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in the Company’s expectations with regard
thereto or change in events, conditions or circumstances on which
any statement is based.
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New Media Investment Group Inc.Ashley Higgins,
212-479-3160Investor Relationsir@newmediainv.com
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