Stations belonging to Communications Corporation of America and White Knight Broadcasting will be going to Nexstar Broadcasting Group and its partner company Mission Broadcasting Inc. in a multi-million dollar television buy.
The deal includes 19 stations in 10 markets and is valued at $270M. Nexstar will be acquiring 11 of the stations, while Mission takes eight and enters into operating agreements with Nexstar. Nexstar said a combination of cash on hand and various credit facilities will be used to pay for the deal.
Nexstar’s Perry A. commented, “The transaction announced today again highlights Nexstar’s role in the industry as a leading consolidator of stations in mid-sized markets through accretive transactions. The acquisition significantly expands our revenue and operating base with stations where we can quickly apply our operating and management disciplines to meaningfully improve their performance which we believe will result in significant free cash flow accretion immediately upon closing. The addition of the CCA stations builds further scale and operating leverage and represents another excellent opportunity for Nexstar to expand our footprint and portfolio in attractive and highly complementary markets.”
Sook added that the multiple was attractive and that the stations were a good fit with the company’s existing station portfolio.
Peter Markham, Chairman, Communications Corporation of America, said, “Nexstar is a premier TV broadcasting company that has grown in a disciplined fashion. We are pleased that the CCA stations will become part of Nexstar’s expanded footprint giving them the benefits of increased scale to build on the momentum we have created over the past several years. As part of the Nexstar portfolio, we believe that our stations will be positioned extremely well for future growth which should benefit our team members, customers and the communities we serve.”
Coming in the deal:
El Paso, TX
Baton Rouge, LA