On Wednesday evening, Gannett’s officials announced that Gannett Co., the owner of USA TODAY and media businesses in 92 local markets, has reached an agreement to buy newspaper company Journal Media Group for $280 million.
Under the terms of the transaction, which was unanimously approved by the boards of directors of both companies and is subject to Journal Media Group shareholder approval, Journal Media shareholders will receive cash of $12 per share. That is a 45 percent premium from the Wednesday closing price of $8.30.
In addition to the Journal Sentinel and Journal Community Publications in Wisconsin, Journal Media Group’s newspapers include the (Redding) Record-Searchlight and Ventura County Star in California; the Naples Daily News and Treasure Coast Newspapers in Florida; the Evansville Courier & Press in Indiana; The (Henderson) Gleaner in Kentucky; the (Anderson) Independent Mail in South Carolina; the Knoxville News Sentinel and The (Memphis) Commercial Appeal; the Abilene Reporter-News, Corpus Christi Caller-Times, San Angelo Standard-Times and Wichita Falls Times Record News in Texas; and the Kitsap Sun in Washington.
Milwaukee-based newspaper publishing company Journal Media Group was born in April after the E.W. Scripps Company purchased Journal Communications.
Shares of Gannett closed at $14.94, up nearly 4%.
Gannett will finance the acquisition with cash and borrowings under its $500 million revolving credit facility. “Gannett is excited to be joining forces with an organization that is so respected by their communities and industry”, Gannett CEO Robert Dickey said.
The trade which typically generated Journal Media Group appeared like madness when it occurs – in any case, that wants produce today?
The acquisition of Journal Media Group will provide Gannett with media outlets in 106 local markets in the USA, according to the press release. Their print circulation will also increase by about 950,000 Sundays and 675,000 weekdays. Scripps retained the firm’s broadcast assets, but spun off both companies’ newspaper operations into Journal Media Group.
Gannett this summer became a company that runs newspapers exclusively, having moved all of its television companies into a separate company, Tegna Inc.
Tysons Corner, Virginia-based Gannett said the deal will immediately add to its earnings by 10 cents to 15 cents per share in the first full year and 20 cents to 25 cents in the second year.