Gray In 4 New Deals, Closes 3 Earlier Ones

Gray Television Inc. on Wednesday announced four new station deals and the closing of all three of its previously announced acquisitions. The new transactions are:

• Wausau-Rhinelander, Wis. (DMA 134): Gray entered into an agreement with Davis Television LLC, to acquire certain non-license assets of WFXS, which had served as the market’s Fox affiliate. Earlier today, WFXS ceased operating. At that time, the parties closed the transaction, and Gray began broadcasting the program streams formerly transmitted by WFXS on Gray’s digital low-power WZAW in Wausau. Gray also owns and operates full-power WSAW in Wausau, which serves as the market’s CBS affiliate. Kalil & Co. was the exclusive broker for this transaction.

• Laredo, Texas (DMA 184). Gray entered into an agreement with Eagle Creek Television to purchase certain non-license assets of KVTV, which had served as the market’s CBS affiliate. Earlier today, KVTV ceased operating. At that time, the parties closed the transaction, and Gray began broadcasting the program streams formerly transmitted by KVTV on Gray’s digital low-power KYLX. Gray also owns and operates full-power KGNS in Laredo, which serves as the market’s NBC affiliate.

• Great Falls and Helena, Mont. (DMAs 191 and 206). Gray entered into an agreement with Cordillera Communications, to sell Gray’s KBGF, the NBC affiliate in Great Falls, and KTVH, the NBC and CW affiliate in Helena. Gray said it “believes that Cordillera, as the owner of top-rated stations across the state of Montana, will leverage its strong presence throughout ‘Big Sky Country’ to further improve the service and operations of KBGF and KTVH for the benefit of those stations’ local communities.”

• Helena, Mont. (DMA 206). Gray owns KMTF in Helena, which simulcasts the CW channel broadcast by KTVH-D2. At the suggestion of Cordillera, Gray has agreed to donate KMTF to Montana State University. This donation will allow MSU to operate a full-power PBS station in the state’s capital for the first time in the history of the statewide PBS network that MSU operates.

Earlier today, Gray closed all three of its previously announced station transactions:

• Odessa-Midland, Texas (DMA 146). Gray acquired KOSA, whose digital channels are affiliated with CBS and MNT.

• Twin Falls, Idaho (DMA 192). Gray acquired KMVT, whose digital channels are affiliated with CBS and CW, as well as KSVT, whose digital channel is affiliated jointly with Fox and MNT.

• Presque Isle, Maine (DMA 205). Gray acquired WAGM, whose digital channels are affiliated with CBS and Fox.

“Today, Gray continues to grow our footprint with even more outstanding, community-focused television stations, and we welcome their dedicated, excellent employees to the Gray corporate family,” said Hilton Howell, Gray’s president-CEO.

The net purchase price for the Wausau and Laredo transactions less the anticipated proceeds from the Montana dispositions is expected to be $20 million, which, the company said, represents a composite multiple of approximately 5.2 times a blended average of 2014-2015 anticipated pro forma broadcast cash flow including expected synergies.

Today, Gray closed the Wausau and Laredo transactions as well as the three previously announced transactions discussed above and funded all those transactions with cash on hand.  The Montana dispositions are subject to receipt of regulatory and other approvals, and we expect them to close in the third quarter of 2015. 

The purchase price, net of anticipated proceeds from dispositions, for all seven separate transactions that Gray has announced in 2015 is $81.35 million. This net purchase price represents a composite multiple of approximately 6 times blended 2014-2015 anticipated pro forma broadcast cash flow including expected synergies, according to Gray.