Nexstar Broadcasting has entered into an agreement to
acquire KGPE Fresno and KGET-KKEY Bakersfield from Newport Television for $35.4
million. KPGE is a CBS affiliate, while KGET airs NBC and CW, and KKEY is a
Separately, Nexstar and closely aligned Mission Broadcasting
worked out an agreement with Smith Media to acquire WFFF-WVNY Burlington, a
Fox-ABC pair, for $17.1 million. Nexstar and Mission will enter into a local
services agreement to provide sales and other services to WVNY upon consummation
of the transaction.
The transactions are subject to FCC approval and are
expected to close in the first quarter of 2013.
"These transactions are consistent with our criteria
for acquisitions that further strategically diversify our operations, create or
present opportunities for virtual duopoly markets and which are financially
accretive," said Perry Sook, Nexstar president and CEO.
The purchase price for the five stations is less than five
times the average 2011/2012 pro-forma cash flow in aggregate, said Sook.
"We expect the combined acquisitions to increase our
free cash flow by approximately 8% to 10% annually in each of the next two
years," he added. "Under Nexstar and Mission's ownership the stations
will realize additional retransmission revenues as well as synergistic
operating improvements, and on a pro-forma basis the acquisitions are both
immediately accretive to results and leverage neutral on a debt-to-cash-flow
sold 22 stations to three groups, including Nexstar, in July.