MCLEAN, Va.--(BUSINESS WIRE)--Jan. 2, 2019--
TEGNA Inc. (NYSE: TGNA) today announced that it has completed its
previously announced acquisition of WTOL, the CBS affiliate in Toledo,
OH, and KWES, the NBC affiliate in Midland-Odessa, TX, from Gray
Television, Inc. for $105 million in cash.
As previously announced, the transaction represents a compelling
purchase price multiple of 5.0 times expected average 2017/2018 EBITDA,
including run rate synergies and net present value tax savings (or 5.9
times, prior to tax savings). The transaction is accretive to EPS within
the first 12 months and immediately accretive to free cash flow. TEGNA
is financing the transaction through the use of available cash.
“WTOL and KWES are strong local media brands well-positioned in key
markets that further enhance our portfolio of Big 4 affiliates,” said
Dave Lougee, president and CEO, TEGNA. “We have a strong track record of
successful acquisitions and continue to pursue opportunities that create
value for our shareholders.”
As a result of the completed sale, TEGNA now owns or operates 49
television stations in 41 markets, covering one-third of U.S. television
householders. TEGNA remains the largest NBC affiliate group, the second
largest CBS affiliate group and the largest owner of Big 4 affiliates in
the top 25 markets. KWES further deepens TEGNA’s presence in the
high-growth state of Texas where TEGNA now owns 12 stations, covering 87
percent of television households in the state. WTOL will join TEGNA’s
WKYC, the NBC affiliate in Cleveland, and WZZM, TEGNA’s ABC affiliate in
Grand Rapids, in serving Ohio and Michigan, two key political
battleground states.
About TEGNA
TEGNA Inc. (NYSE: TGNA) is an innovative media company that serves the
greater good of our communities. With 49 television stations and two
radio stations in 41 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 approximately 30 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 also delivers innovative and unparalleled solutions
for advertisers through TEGNA
Marketing Solutions (TMS). TMS is a one-stop shop that helps
businesses thrive through an unmatched suite of services and solutions
that reach consumers across television, email, social and over-the-top
(OTT) platforms, including Premion,
TEGNA’s OTT advertising service. 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: https://www.businesswire.com/news/home/20190102005621/en/
Source: TEGNA Inc.
For media inquiries, contact:
Steve Kidera
Director,
Corporate Communications
703-873-6434
skidera@TEGNA.com
For investor inquiries, contact:
Jeffrey Heinz
Vice
President, Investor Relations
703-873-6917
jheinz@TEGNA.com