New Media to acquire Morris Publishing Group assets for $120M
New Media Investment Group announced that it has agreed to acquire many of the newspapers and related assets from Morris Publishing Group for $120M. New Media is acquiring many of the Morris portfolio of U.S.-based newspaper assets located across Georgia, Florida, Texas, Kansas, Arkansas, and Alaska. New Media is acquiring 79 publications including all eleven dailies, the largest of which are The Florida Times-Union (44,750 daily circulation and 68,591 Sunday circulation), The Augusta Chronicle (26,862 daily circulation and 31,682 Sunday circulation), and the Savannah Morning News (21,588 daily circulation and 26,048 Sunday circulation). In addition to the print publications, the acquisition includes Morris's Main Street Digital group, substantially all weekly and niche print products and all related websites and digital operations. The purchase price is within New Media's stated acquisition range of 3.5x - 4.5x the seller's LTM As Adjusted EBITDA. The transaction will be funded with cash on the balance sheet. We expect it to be highly accretive to free cash flow with net synergies of $10-15 million. We expect the transaction to close early in the fourth quarter.