Nexstar Broadcasting Group, Inc. (Nasdaq: NXST) announced today that it has entered into a definitive agreement to acquire the assets of KGPE-TV, the CBS affiliate serving the Fresno, California market and KGET and KKEY-LP, the NBC/CW affiliate and low powered Telemundo affiliated stations serving the Bakersfield, California market from entities controlled by privately-held Newport Television, LLC (“Newport”) for $35.4 million in a transaction that is expected to be immediately accretive to Nexstar.
Separately, Nexstar announced that it and Mission Broadcasting entered into a definitive agreement with Smith Media, LLC and affiliates (“Smith”) to acquire the assets of WFFF-TV, the FOX affiliate and WVNY the ABC affiliate serving the Burlington, Vermont market from for a total of $17.1 million plus any working capital adjustments applicable at the time of closing in a transaction that is also expected to be immediately accretive to the Company. Nexstar and Mission will enter into a local services agreement to provide sales and other services to WVNY upon consummation of the transaction.
The proposed transactions are expected to be accretive to Nexstar’s operating results immediately upon closing and will result in Nexstar operating one station and providing sales and other services to another in 25 of the 41 markets where it operates (which assumes the completion of the acquisition of twelve Newport stations, announced in July 2012). In addition, it will expand to 71 the number of stations and related digital signals that Nexstar either owns or provides sales and other services to.
Nexstar and Mission intend to finance the station acquisitions, through borrowings under their senior credit facilities. The transactions are subject to FCC approval and other customary approvals, and the Newport and Smith station acquisitions are expected to close in the first quarter of 2013.
Commenting on the agreements, Nexstar Broadcasting Group President and Chief Executive Officer, Perry A. Sook said, “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.