Nexstar Broadcasting Group has agreed to acquire KASW Phoenix for $68 million from Meredith and SagamoreHill. The sellers purchased KASW, a CW affiliate, from Gannett and Sander Media LLC as part of Gannett’s acquisition of Belo Corp., and agreed to divest it to an independent buyer within 90 days of its closing.
The deal is subject to regulatory approval and is expected to close in the first quarter of 2015.
In the first year following the closing, KASW is expected to generate approximately $14 million in adjusted broadcast cash flow.
“The planned acquisition of KASW is highly accretive to Nexstar’s operating results, further strategically diversifies Nexstar’s station portfolio, and presents a great opportunity for the company to leverage its intellectual capital and operating management disciplines to drive significant synergies,” said Perry Sook, Nexstar president and CEO. “In addition, the transaction offers Nexstar entrée to the Arizona and Phoenix markets which represent a natural complement to our existing operations in the Southwestern region of the United States."
The purchase price is less than 5.5 times the average 2014/2015 pro-forma projected cash flow, said Sook.