New Media Announces Acquisition of a Majority Interest in Events Production Company, Rugged Events Holding LLC, for $10.4 Mil...
August 15 2018 - 4:15PM
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 the acquisition of a majority interest in
Rugged Events Holding LLC (“Rugged Events”) for $10.4 million.
Rugged Events is the production company behind the Rugged Maniac
Obstacle Race series and more than 90 premier endurance events in
the U.S and Canada.
Rugged Events is a Shark Tank success story, utilizing a $1.75
million investment from Mark Cuban to become one of the largest
endurance event companies in the nation based on number of events.
Initially focused on obstacle course racing, the company has since
expanded into marathons and other traditional road races, more than
quadrupling its portfolio of events in the four years since Cuban’s
investment.
Following the acquisition, Rugged Events will become a key
component of New Media’s events company, GateHouse Live. GateHouse
Live commenced in 2015 and has grown organically over the past
three years to earn approximately $20 million in revenue over the
last twelve months. With the addition of Rugged Events, GateHouse
Live now hosts over 460 events in over 300 markets in North
America, with 650,000 annual attendees, and a database of over 5.1
million users. GateHouse Live is also the only national media
events company to own and operate a network of endurance events
across the country.
“There’s an important relationship between participatory sports
and media, which GateHouse allows us to fully realize,” said
Bradford Scudder, Chief Executive Officer of Rugged Events. “This
acquisition allows us to accelerate our growth in both new and
existing markets, while also making us the leading multi-platform
solution for brands that want to reach the endurance sport audience
through a combination of media and experiential events.”
This acquisition deepens a core element of New Media's events
company, which has seen robust growth over the past two years. In
addition to endurance events, GateHouse Live also specializes in
high school and community awards, food and wine festivals, and
other highly engaging community experiences.
“Owning both events and media outlets in local markets allows us
to deeply connect with communities while also providing a
comprehensive, one-of-a-kind platform for our partners to engage
with consumers in a meaningful and impactful way,” said Jason
Taylor, President of New Media Ventures Group and President of
GateHouse Live.
“Our entire team has worked hard over the past eight years to
build a portfolio of fun and challenging events, while also
developing industry-leading production capabilities,” said Rob
Dickens, Chief Operating Officer of Rugged Events. “We’re excited
to bring our experience and access to hundreds of thousands of
active lifestyle enthusiasts to GateHouse Live.”
Mr. Scudder and Mr. Dickens, co-founders of Rugged Events, will
contribute to GateHouse Live in expanded roles, while retaining a
minority interest in Rugged Events.
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 to 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 145 daily publications. As of July 1, 2018, New
Media operates in over 570 markets across 37 states reaching over
23 million people on a weekly basis and serves over 220,000
business customers.
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, but not
limited to, statements regarding growth expectations for GateHouse
Live and Rugged Events, the expected number of events to be held,
our ability to attract attendees and partners to events and realize
the anticipated benefits from the acquisition and other potential
benefits of the acquisition. These statements are based on
management’s current expectations and beliefs and are subject to a
number of risks and uncertainties, such as general economic
conditions in the markets in which we operate, inadequate
diligence, our ability to successfully grow the acquired business,
event cancellations and difficulties integrating the acquired
business. 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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version on businesswire.com: https://www.businesswire.com/news/home/20180815005689/en/
New Media Investment Group Inc.Ashley Higgins,
212-479-3160Investor Relationsir@newmediainv.com
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