Sinclair Broadcast to purchase Bonten Media Group TV stations for $240M
Sinclair Broadcast Group announced that it has entered into a definitive agreement to purchase the stock of Bonten Media Group Holdings and Cunningham Broadcasting Corporation has entered into a definitive agreement to purchase the membership interest of Esteem Broadcasting for an aggregate purchase price of $240M. Bonten owns 14 television stations in 8 markets which reach approximately 1% of the U.S. TV households and provides services to 4 stations pursuant to joint sales agreements with Esteem Broadcasting. Completion of the transaction is subject to the satisfaction of customary closing conditions, including approval by the Federal Communications Commission and antitrust clearance, as applicable. The Company anticipates that the transaction will close and fund with cash on hand in the third quarter of 2017, subject to the satisfaction of the closing conditions. Including the Bonten station acquisitions, all previously announced acquisitions, and pro forma for expected synergies, the Company's 2015 and 2016 media revenues would have been $2.236B and $2.620B, respectively. The $240M purchase price represents a 6.7x multiple and is expected to be on average approximately $25M accretive to our free cash flow on an annualized basis.