The $177 million purchase of the CBS affiliate from Gannett and Sander Media closes following the receipt of regulatory approvals.
Meredith Completes KMOV St. Louis Purchase
Meredith Corp. today announced it has completed its acquisition of CBS affiliate KMOV St. Louis (DMA 21), from Gannett Co. and Sander Media, for $177 million. The company said the transaction will not have a material effect on Meredith’s third quarter or full year fiscal 2014 financial performance.
“We’re pleased to add this high-performing station to our portfolio,” said Meredith Chairman-CEO Stephen M. Lacy. “The acquisition of KMOV adds another Top 25 television market to our group, and is consistent with our successful ‘Total Shareholder Return’ strategy. Together with KCTV (CBS) in Kansas City, Meredith now has powerful local brands in two of the Midwest’s top news and sports markets.”
On Dec. 23, 2013, Meredith announced separate agreements to acquire KMOV and two stations in Phoenix, the nation’s 12th largest market. Meredith said it expects to complete the acquisition of the Phoenix stations — KTVK, an independent, and KASW, the CW affiliate — by June 30, subject to regulatory approvals and other customary closing conditions.Ã¢â‚¬â€¹
The license and certain related assets of KASW will be purchased by a third party — SagamoreHill of Phoenix LLC — and Meredith will provide certain services for the operation of KASW pursuant to a customary services agreement with SagamoreHill.
In the first full year post closing, Meredith said, all three television stations are expected to generate combined revenues of $105 millionto $115 million, and be accretive to run-rate earnings per share by $0.16 to $0.18.
Meredith said it continues to expect fiscal 2014 full year earnings per share to range from $2.60 to $2.95, and fiscal 2014 third quarter earnings per share to range from $0.63 to $0.68. Ranges for both periods exclude operating results and transaction expenses related to the acquisitions of the stations in Phoenix and St. Louis.