Gray Television has agreed to acquire KOSA in Odessa, Texas for $33.6 million. The seller is ICA Broadcasting. KOSA is the CBS affiliate in DMA No. 146; it pulled in nearly double the revenue of the closest competitor last year, according to BIA/Kelsey.
“Gray is thrilled to be selected by the esteemed local owners of KOSA-TV/CBS7 to become the new steward of the leading media institution in the rapidly growing Odessa-Midland area,” said Hilton Howell, Gray president and CEO. “Gray will build upon the station’s strong foundation and enviable record of success to further propel CBS7 to dominance in its local market. We are also excited to expand our portfolio with a fourth number-one ranked CBS affiliate in Texas.”
The deal is subject to regulatory approval and is expected to close in the third quarter. Gray says the transaction purchase price represents a multiple of approximately 6.9 times a blended average of the station’s 2014-2015 pro forma broadcast cash flow.
“CBS7 is an integral part of the dynamic communities in which our family has lived, worked, and grown for decades,” said John Bushman, ICA chairman. “We welcome Gray to Odessa with the knowledge that its values, resources, and portfolio of similar stations will ensure that CBS7 continues providing strong journalism, community leadership, and workplace excellence for many more decades to come.”
Gray defined its growth strategy in the press release as acquiring “quality assets in attractive markets.” Last month, it agreed to acquire WAGM in Presque Isle, Maine, for $10.25 million.
Kalil & Co. represented ICA in the transaction.