GRAY TO ACQUIRE QUINCY MEDIA, INC. FOR $925 MILLION - Seite 2

Through the transaction announced today, Gray will acquire the following television stations:

WPTA (ABC/NBC) and WISE (CW) in Fort Wayne, Indiana (DMA 104)
WEEK (NBC/ABC/CW) in Peoria, Illinois (DMA 118)
WREX (NBC/CW) in Rockford, Illinois (DMA 132)
KBJR (NBC/CBS) and KDLH (CW) in Duluth, Minnesota (DMA 136)
KTIV (NBC/CW) in Sioux City, Iowa (DMA 147)
KTTC (NBC/CW) in Rochester-Mason City, Minnesota-Iowa (DMA 156)
WBNG (CBS/CW) in Binghamton, New York (DMA 158)
WVVA (NBC/CW) in Bluefield-Beckley, West Virginia (DMA 162)
WGEM (NBC/FOX/CW) in Quincy, Illinois (DMA 172)

To facilitate prompt regulatory approvals, Gray has elected to divest Quincy’s high quality television stations in the following markets in which Gray also owns a full-power television station:

Tucson, Arizona (DMA 75)
Madison, Wisconsin (DMA 80)
Paducah-Harrisburg, Kentucky-Illinois (DMA 91)
Cedar Rapids, Iowa (DMA 92)
La Crosse-Eau Claire, Wisconsin (DMA 123)
Wausau-Stevens Point, Wisconsin (DMA 134)

Upon the issuance of this press release, Wells Fargo Securities will begin a formal process to market the divestiture stations to qualified third parties.  The divestitures may take the form of cash sales, swaps involving other television stations, or a combination of cash and swaps.  Interested parties should contact Wells Fargo Securities directly and should not contact Gray or Quincy about the divestiture opportunities. 

In addition to the stations above, Gray will acquire Quincy’s Heroes & Icons affiliate WSJV in South Bend, Indiana (DMA 98) as well as WGEM(AM)/-FM in Quincy, Illinois.  Gray will not acquire Quincy’s newspaper operations, which will be divested prior to the Gray/Quincy closing.

The parties expect to close their transaction following receipt of regulatory and other approvals in the second or third quarter of 2021.  Gray expects that the Quincy transaction will be immediately accretive to Gray’s free cash flow per share.  Including expected year-one annualized synergies of approximately $23 million, the transaction purchase price represents a multiple of approximately 6.9 times a blended average of Quincy’s 2019/2020 earnings before interest, taxes, depreciation and amortization.