MCLEAN, Va. & SAN DIEGO--(BUSINESS WIRE)--Dec. 18, 2017--
TEGNA Inc. (NYSE: TGNA) and Midwest Television, Inc. jointly announced
today they have entered into a definitive agreement under which TEGNA
will acquire, for $325 million in cash, KFMB-TV, the CBS affiliated
station in San Diego, KFMB-D2 (CW) and radio broadcast stations KFMB-AM
and KFMB-FM in San Diego.
This press release features multimedia. View the full release here:
Through this transaction, TEGNA adds a strong market to its portfolio of
big four affiliates in top markets. San Diego is the 29th
largest U.S. TV market with 1.1 million households and the 17th
largest radio market. KFMB-TV is the long-standing market leader in San
Diego. It leads the market in audience ratings and share across all
demographics and is number one in news across all major time slots.
KFMB-D2, The CW San Diego, operates as a digital subchannel of
KFMB. KFMB-TV and KFMB-D2 share studio facilities in the Kearny Mesa
section of San Diego with KFMB 760 AM talk radio and KFMB-FM, which
offers an adult rock hits format.
“This is a marriage of two great broadcasting cultures. We have long
admired our dedicated colleagues in San Diego and look forward to
continuing the stations’ high-quality journalism, editorial independence
and commitment to their local community,” said Dave Lougee, president
and CEO, TEGNA. “We have a proven ability to be a strategic and
disciplined consolidator with a track record of acquiring profitable
businesses at an attractive, accretive valuation. Looking ahead, we will
continue to evaluate additional investments and select transactions to
build on our growth and success with a focus on creating shareholder
Commenting on the transaction, Elisabeth Kimmel, Midwest Television,
Inc.’s president and owner said, “This transaction is a testament to the
outstanding value our employees have created serving the San Diego
community. Having owned these properties for over 55 years, our family
believed it imperative to find an excellent steward for television and
radio stations that the community has embraced as part of the fabric of
San Diego. We have found such a partner in TEGNA, an innovative media
company that shares our commitment to the highest levels of journalistic
integrity and serving the greater good of the community. We welcome
TEGNA to San Diego with the knowledge that their values, resources and
community leadership will serve our employees, consumers and customers
for decades to come.”
TEGNA’s resources will provide an enhanced level of innovation to San
Diego consumers and advertisers, driven by industry-leading audience and
advertiser-focused initiatives. TEGNA will achieve synergies driven by
mechanical revenue and cost efficiencies.
The transaction, structured as an asset purchase, represents an
attractive purchase price multiple of 6.6 times average expected
2017/2018 EBITDA, including expected run rate synergies and tax
benefits. TEGNA expects the transaction to be accretive to EPS by a few
cents within the first 12 months after close, and immediately accretive
to free cash flow.
TEGNA will finance the transaction through the use of available cash and
borrowing under its existing credit facility. The acquisition is subject
to customary regulatory approvals and closing conditions, and is
expected to close in the first quarter of 2018.
TEGNA Inc. (NYSE: TGNA) is an innovative media company that serves the
greater good of our communities. With 46 television stations in 38
markets, TEGNA delivers relevant content and information to consumers
across platforms. It is the largest owner of top 4 affiliates in the top
25 markets, reaching approximately one-third of all television
households nationwide. Each month, TEGNA reaches 50 million adults
on-air and 35 million across its digital platforms. TEGNA has been
consistently honored with the industry’s top awards, including Edward R.
Murrow, George Polk, Alfred I. DuPont and Emmy Awards. TEGNA delivers
results for advertisers through unparalleled and innovative solutions
including OTT local advertising network Premion,
centralized marketing resource Hatch, and G/O
Digital, a one-stop shop for local businesses to connect with
consumers through digital marketing. Across platforms, TEGNA tells
empowering stories, conducts impactful investigations and delivers
innovative marketing solutions. For more information, visit www.TEGNA.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171218006180/en/
Source: TEGNA Inc.
For media inquiries, contact:
President, Corporate Communications
investor inquiries, contact:
For media inquiries, contact:
Community Services & TV Program Development
Midwest Television, Inc.
7677 Engineer Rd
San Diego, CA 92111