E.W. Scripps to acquire two ABC affiliates in Florida, Texas for $55M
The E.W. Scripps Company has agreed to acquire two ABC-affiliated television stations in Florida and Texas owned by Raycom Media for $55M. KXXV/KRHD in Waco, Texas, and WTXL in Tallahassee, Florida, are being divested as part of Gray Television's acquisition of Raycom. With this deal, Scripps will own 17 ABC affiliates. The stations are market No. 86 (KXXV/KRHD) and market No. 108 (WTXL). The acquisitions will expand Scripps' holdings to 35 TV stations in 26 markets and increase its U.S. TV household reach to 18.5%. KXXV/KHRD will be the company's first TV station in Texas. Adding WTXL expands Scripps' presence in Florida, which already includes the Fort Myers, West Palm Beach and Tampa markets, to reach nearly 50% of the state's TV households. The transaction is structured as a purchase of assets, and it will be funded with cash on hand; no debt financing will be required. It is expected to be accretive to earnings in the first full year Scripps operates the acquired stations. The purchase is subject to regulatory approvals and customary closing conditions and is expected to close in the fourth quarter in conjunction with the closing of the Gray-Raycom transaction.