The station group’s latest acquisition offers both CBS and Fox programming to the Presque Isle, Maine, DMA. Seller NEPSK Inc. has owned it for more than 30 years.
Gray Television today reached an agreement with NEPSK Inc. to acquire WAGM Presque Isle, Maine (DMA 205), for $10.25 million in cash. WAGM’s two digital channels are affiliated with CBS and Fox.
WAGM serves an expansive DMA that is geographically larger than the states of Connecticut and Rhode Island combined, as well as the western portion of the Canadian province of New Brunswick outside of the Nielsen-defined DMA boundaries.
“This transaction presents us with a rare opportunity to acquire a television station with the demonstrated track record of localism and service that WAGM-TV has achieved,” said Kevin Latek, Gray’s SVP of business affairs. “We are honored to be trusted with this fine institution, and we look forward to working with the dedicated employees to further enhance its success.”
Carole Kozloski, President-COO of NEPSK, commented: “The decision to sell WAGM has been a difficult one for us. We have been part of this community for over 30 years, and many of our employees have been with us since the beginning. Gray is a broadcast company with similar beliefs to ours, and we are confident they will follow in our footsteps, having the resources to better serve our employees and our local communities.”
Gray said the purchase price “represents a multiple of less than six times a blended average of 2014-15 anticipated pro forma broadcast cash flow of the station including expected synergies. As such, Gray’s acquisition of WAGM-TV will be immediately free cash flow accretive to Gray.”
Gray said it expects to finance the transaction with cash on hand. The transaction is subject to receipt of regulatory and other approvals and is expected to close in the third quarter of 2015.