Nexstar Buying Two Stations For $19.45M
Nexstar Media Group is beefing up its station portfolio, purchasing KRBK, the Fox affiliate in Springfield, Mo. (DMA 75), from Koplar Communications and CW affiliate WHDF Huntsville, Ala. (DMA 80), from Lockwood Broadcast Group for an aggregate purchase price of $19.45 million, “plus certain price adjustments and capital expenditure requirements.”
Nexstar began operating WHDF on July 15, and KRBK on Aug. 1, under local marketing agreements. The transactions are subject to FCC and other customary approvals, and are expected to close in the fourth quarter of 2018.
The company said the proposed transactions are expected to be immediately accretive to Nexstar’s operating results upon closing. The company said it intends to finance the station acquisitions with cash from operations and borrowings under its senior credit facilities.
The two stations, Nexstar said, “complement the existing programming and marketing solutions and services delivered to viewers and advertisers in Springfield and Huntsville by stations and digital platforms owned by Nexstar, or with whom Nexstar has a local service agreement, including WZDX (Fox), WAMY (MNT), KOLR (CBS) and KOZL (MNT), as well as rocketcitynow.com and ozarksfirst.com.
Commenting on the agreement, Tim Busch, Nexstar president, said: “Nexstar remains opportunistic in expanding our broadcast and digital platform by pursuing strategically and financially compelling growth opportunities that further enhance our overall competitive position and free cash flow.
“The acquisitions of KRBK-TV and WHDF-TV will allow Nexstar to generate incremental advertising and net retransmission consent revenue growth without increasing our total U.S. television household reach.
“In addition, the transactions are EBITDA leverage-neutral on a pro-forma basis, and the purchase price represents a highly attractive multiple of the pro forma contribution to Nexstar’s operating results, given the operating synergies and anticipated elevated levels of advertising and distribution revenues.
“Importantly, as our organization grows, we continue to simultaneously expand our support of the evolving needs and interests of our local viewers, hometown businesses and community organizations that we proudly serve each day. We remain committed to Nexstar’s rich tradition of local programming excellence and community orientation at both stations and look forward to delivering more exceptional primetime, syndicated, sports and local news programming to Springfield and Huntsville viewers.”