Tegna has wrapped up its $325 million purchase of Midwest Broadcasting’s KFMB-TV, the CBS-affiliated station in San Diego. The deal also includes radio broadcast stations KFMB-AM and KFMB-FM in San Diego.
With the deal officially in the books, Tegna now owns or operates 47 television stations and two radio stations in 39 markets.
“We are thrilled to welcome the talented KFMB team to Tegna. Like us, KFMB cares deeply about journalistic integrity and serving the greater good of the San Diego community. We want to maintain that special connection while applying our strategic initiatives to enhance KFMB’s future capabilities,” said Tegna President and CEO Dave Lougee in a statement. “This transaction highlights Tegna’s continued track record of success as a strategic consolidator that delivers value for our shareholders.”
“This transaction is a testament to the outstanding value our employees have created serving the San Diego community. Having owned these properties for over 55 years, our family believed it imperative to find an excellent steward for television and radio stations that the community has embraced as part of the fabric of San Diego. We have found such a partner in Tegna, an innovative media company that shares our commitment to the highest levels of journalistic integrity and serving the greater good of the community,” said Elisabeth Kimmel, president and owner of Midwest Television, in a statement.
Tegna expects the deal to be accretive to EPS by a few cents within the first 12 months after close, and immediately accretive to free cash flow.
The acquisition contributed to a significant portion of the total broadcast television M&A registered during 2017. U.S. broadcast station M&A volume reached $748.8 million in the fourth quarter and totaled $8.24 billion for 2017, according to S&P Global’s Kagan. Of that annual total, about $5 billion was attributed to television deals.