Nexstar Media Group, Inc. (NASDAQ: NXST) announced today that its subsidiary, Nexstar Broadcasting, Inc., has entered into definitive agreements with KRBK LLC to acquire KRBK-TV, the FOX affiliate serving Springfield, Missouri (DMA #75), and with Huntsville TV LLC to acquire WHDF-TV, the CW affiliate serving Huntsville, Alabama (DMA #80) for an aggregate purchase price of $19.45 million, plus certain price adjustments and capital expenditure requirements.
(Note: Nexstar owns KSNF in Joplin and manages KODE and owns KOZL and manages KOLR in Springfield)
The proposed transactions are expected to be immediately accretive to Nexstar’s operating results upon closing. The Company intends to finance the station acquisitions with cash from operations and borrowings under its senior credit facilities.
KRBK-TV and WHDF-TV complement the existing programming and marketing solutions and services delivered to viewers and advertisers in Springfield and Huntsville by stations and digital platforms owned by Nexstar, or with whom Nexstar has a local service agreement, including WZDX-TV (FOX), WAMY-TV (MyNet), KOLR-TV (CBS) and KOZL-TV (MyNet), as well as rocketcitynow.com and ozarksfirst.com. Pursuant to local marketing agreements, Nexstar began operating WHDF-TV on July 15, 2018 and KRBK-TV on August 1, 2018. The transactions are subject to FCC and other customary approvals, and are expected to close in the fourth quarter of 2018.
Commenting on the agreement, Tim Busch, President of Nexstar Broadcasting, Inc. said, “Nexstar remains opportunistic in expanding our broadcast and digital platform by pursuing strategically and financially compelling growth opportunities that further enhance our overall competitive position and free cash flow. The acquisitions of KRBK-TV and WHDF-TV will allow Nexstar to generate incremental advertising and net retransmission consent revenue growth without increasing our total U.S. television household reach. In addition, the transactions are EBITDA leverage-neutral on a pro-forma basis, and the purchase price represents a highly attractive multiple of the pro forma contribution to Nexstar’s operating results, given the operating synergies and anticipated elevated levels of advertising and distribution revenues.
“Importantly, as our organization grows, we continue to simultaneously expand our support of the evolving needs and interests of our local viewers, hometown businesses and community organizations that we proudly serve each day. We remain committed to Nexstar’s rich tradition of local programming excellence and community orientation at both stations and look forward to delivering more exceptional primetime, syndicated, sports and local news programming to Springfield and Huntsville viewers.”
KRBK-TV and WHDF-TV complement the existing programming and marketing solutions and services delivered to viewers and advertisers in Springfield and Huntsville by stations and digital platforms owned by Nexstar, or with whom Nexstar has a local service agreement, including WZDX-TV (FOX), WAMY-TV (MyNet), KOLR-TV (CBS) and KOZL-TV (MyNet), as well as rocketcitynow.com and ozarksfirst.com. Pursuant to local marketing agreements, Nexstar began operating WHDF-TV on July 15, 2018 and KRBK-TV on August 1, 2018. The transactions are subject to FCC and other customary approvals, and are expected to close in the fourth quarter of 2018.
Commenting on the agreement, Tim Busch, President of Nexstar Broadcasting, Inc. said, “Nexstar remains opportunistic in expanding our broadcast and digital platform by pursuing strategically and financially compelling growth opportunities that further enhance our overall competitive position and free cash flow. The acquisitions of KRBK-TV and WHDF-TV will allow Nexstar to generate incremental advertising and net retransmission consent revenue growth without increasing our total U.S. television household reach. In addition, the transactions are EBITDA leverage-neutral on a pro-forma basis, and the purchase price represents a highly attractive multiple of the pro forma contribution to Nexstar’s operating results, given the operating synergies and anticipated elevated levels of advertising and distribution revenues.
“Importantly, as our organization grows, we continue to simultaneously expand our support of the evolving needs and interests of our local viewers, hometown businesses and community organizations that we proudly serve each day. We remain committed to Nexstar’s rich tradition of local programming excellence and community orientation at both stations and look forward to delivering more exceptional primetime, syndicated, sports and local news programming to Springfield and Huntsville viewers.”
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