Gannett to acquire Journal Media Group for $280 million

McLean-based Gannett Co. Inc. plans to acquire Milwaukee-based Journal Media Group Inc. for approximately $280 million.

Journal Media has print and digital publishing operations serving 14 U.S. markets in nine states, including the Milwaukee Journal Sentinel, the Naples Daily News, The Commercial Appeal in Memphis and Ventura County Star in California.

The combined companies will serve 106 local markets in the U.S. and will result in a combined digital audience of more than 100 million unique domestic visitors a month.

Under the agreement terms of the transaction, Journal Media Group shareholders will receive $12 per share in cash. Based on the closing price of Journal Media Group on Oct. 7, 2015, this represents a premium of 44.6 percent. Gannett will finance the transaction through a combination of cash on hand and borrowings under Gannett’s $500 million revolving credit facility.

Gannett expects the deal to add $450 million to its annual revenues and approximately $60 million of adjusted EBITDA (earnings before interest, taxes, depreciation and amortization.)

The company add 15 dailies and 18 weeklies in 14 local markets in nine states, including key markets such as Milwaukee, Memphis and Knoxville, Tenn.

Gannett also expects to add more than 10 million unique digital domestic visitors a month.