Nexstar Broadcasting Group has agreed to acquire seven TV stations from Grant Company for $87.5 million. Simultaneous with that agreement, Nexstar entered into an agreement with closely aligned Mission Broadcasting for Mission to purchase one of the stations from Nexstar, with Nexstar providing services for a fee.
The stations are WFXR-WWCW Roanoke, WZDX Huntsville, KGCW-KLJB Quad Cities (IA), and WLAX-WEUX La Crosse (WI). All are Fox or CW affiliates. KLJB, a Fox affiliate, is the one that is designated to be acquired by Mission.
The deal is subject to regulatory approval.
Upon closing this and other previously announced transactions, Nexstar will own or operate 102 stations in 54 markets, reaching approximately 15.5% of all U.S. television households.
In the first twelve months following the closing of the transaction, the acquired stations are expected to generate between $18 million and $19 million in additional earnings before interest, taxes, depreciation and amortization.
Perry A. Sook, chairman, president and CEO, said the deal "extends our momentum in building the scale of our broadcast operating base through accretive acquisitions. This transaction is consistent with our criteria for acquisitions that are accretive to free cash flow, further strategically diversify our revenue and operating base, create additional duopolies or virtual duopolies and present significant synergies with well-defined paths to realization."
With a stash of recent acquisitions under its belt, Nexstar reported net revenue of $125.8 million in the third quarter November 5, 39.8% higher than the previous third quarter.