NEW YORK--(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 today that it has completed the acquisition of the Ohio publishing division of Wooster Republican Printing Company (“WRPC”), and concurrently announced the signing of a sale agreement for the Medford, Oregon Mail Tribune and related assets in separate transactions.
- Completed the acquisition of the publishing division of WRPC for $21.2 million, within New Media’s stated acquisition range of 3.5x – 4.5x LTM As Adjusted EBITDA.
- Announced the sale of the Medford, Oregon Mail Tribune and related assets for $15 million, or more than 7.0x 2016 As Adjusted EBITDA, which will result in an estimated 73% gain on the transaction. Rosebud Media, LLC is the acquirer. This sale is expected to close in the first quarter of 2017.
Wooster Republican Printing Company
“New Media is pleased to announce both of these transactions today as both are in line with our goals of creating and maximizing value for our shareholders. We are honored that the Dix family, which owns WRPC, chose us as the future owner for their newspapers which are a great complement to our current footprint in northeastern Ohio,” said Michael E. Reed, New Media President and Chief Executive Officer. “For over a century, the Dix publications have served as the predominant source of local news for the communities in which they serve and we look forward to working with their employees to continue growing these community partnerships.”
The publishing division of WRPC is comprised of five daily and 18 weekly publications across northeastern Ohio and has been privately owned and operated by the Dix family for over a century. Its daily papers include The Daily Record (22,540), the Record-Courier (15,626), The Alliance Review (10,450), the Times-Gazette (9,905), and The Daily Jeffersonian (11,150). In addition to the print publications, the acquisition includes a number of niche publications, websites and a commercial printing operation.
“While selling one of our businesses is never easy, the sale of the Mail Tribune represents our continued commitment to pursue strategic transactions that are in the best interest of New Media’s shareholders,” shared Mr. Reed. “First acquired in September 2013 as part of our Local Media Group transaction, the Mail Tribune continues to be a leading daily newspaper in southern Oregon and was recently awarded five first place recognitions from the Oregon Newspaper Publishers Association. We are confident the newspaper will continue to produce in-depth and award-winning content under its new ownership. We would like to thank all the great employees at the Mail Tribune for all their great work during their time as part of our family.
“Despite the strategic sale of the Mail Tribune, New Media remains a net acquirer of local media assets, having deployed over $120 million for acquisitions in 2016 and completing our first acquisition of 2017, as announced today. With a robust pipeline for potential future acquisitions, and an established track record of being disciplined buyers of local media assets, we remain confident in our ability to re-deploy the proceeds from the sale of the Mail Tribune within our stated goals for acquisitions.”
The estimated gain on the transaction is based on internal estimates and management’s current expectations.
About New Media Investment Group Inc.
New Media is focused primarily on investing in a high quality, diversified portfolio of local media assets, and on growing existing advertising and digital marketing businesses. The Company is one of the largest publishers of locally based print and online media in the United States as measured by its 121 daily publications. As of September 25, 2016, the Company operates in over 525 markets across 36 states. New Media’s portfolio of products, as of September 25, 2016, includes over 600 business and community publications and over 525 websites, serves more than 200,000 business advertising accounts, and reaches 20 million people on a weekly basis.
For more information regarding New Media and to be added to our email distribution list, please visit www.newmediainv.com.
Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the expected timing, closing and benefits of future acquisitions and dispositions, future deployable free cash flow, and pursuing and completing future acquisition and strategic opportunities, the availability of such opportunities and the benefits associated with such opportunities. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties, such as continued declines in advertising and circulation revenues, economic conditions in the markets in which we operate, competition from other media companies, technological developments in the media sector, an ability to source acquisition opportunities with an attractive risk-adjusted return profile, inadequate diligence of acquisition targets, and difficulties integrating and reducing expenses at our newly acquired businesses. 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.