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New Media to purchase business of Morris Publishing
Posted on Thursday, 10 August 2017 09:16
New Media Investment Group is acquiring the media assets of Morris Publishing Group in an all-cash deal worth USD 120.00 million.
According to Zephyr, the M&A database published by Bureau van Dijk, this is the buyer’s third largest purchase to have been announced to date.
Morris’ assets in question consist of 79 newspapers based in Georgia, Florida, Texas, Kansas, Arkansas and Alaska, as well as its unit Main Street Digital, weekly and niche materials, and other websites and digital print operations.
The largest of these publications in terms of daily circulation is the Florida Times-Union, followed by the Augusta Chronicle and the Savannah Morning News, according to New Media’s press release.
Commenting on the acquisition, the buyer’s chief executive Michael E Reed said “This transaction will expand our footprint into new states and add some very attractive markets to our local media portfolio.”
The seller has appointed Moorgate Securities and Avondale Partners to the deal, which is expected to close in the fourth quarter of 2017.
Listed on the New York Stock Exchange, New Media invests in and operates digital and printed media publishing businesses.
It is active across 36 US states and has a vast product portfolio that includes more than 630 community publications and over 550 websites with about 225,000 business advertising clients.
This is not New Media’s first transaction this year as it agreed two months ago to purchase the newspaper publication assets of Calkins Media for USD 17.50 million.
Last year, it also successfully took over the regional newspaper business of Harris Enterprises in a deal worth USD 20.40 million.
New Media posted revenue of USD 1.26 billion in the 12 months ended 25th December 2016, down slightly from the USD 696.70 million recorded in the previous year.
Net profit for the period totalled USD 31.64 million, compared to USD 67.61 million in 2015.
© Zephus Ltd