Acquisition by Meredith Creates a Duopoly for the Company in the 21st Largest Television Market in the US
Meredith Corporation, one of the leading media and marketing companies in the US, announced a definitive agreement to purchase KPLR-TV, the CW affiliate in the St Louis market, for US$65 million/£46.6 million, subject to certain purchase price adjustments.
The transaction, in which the company will purchase all of the stock of KPLR is expected to close concurrently with Sinclair Broadcast Group‘s acquisition of Tribune Media Company, and after the parties receive regulatory approvals.
The acquisition creates a duopoly for the company in the nation’s 21st largest television market, as it already owns CBS affiliate KMOV in St Louis. It is the 6th duopoly market for the company.
“We are excited to be adding to our presence in the important St Louis market. The acquisition of KPLR is consistent with our successful Total Shareholder Return strategy and will be immediately accretive to earnings,” said Meredith President and Chief Executive Officer Tom Harty.
The acquisition of KPLR is not expected to have a material effect on the company’s fiscal 2018 financial performance. It will fund the acquisition using existing cash.
Once the acquisition of KPLR is complete, Meredith will own 18 television stations that reach 11% of US television households. Eight are located in the Top 25 markets, and 14 in Top 50 markets.
Cooley LLP served as Meredith’s legal advisor and BDT & Company and Wells Fargo Securities served the company’s financial advisors in the transaction.
The company produces approximately 700 hours of local news and entertainment content each week, and operates leading local digital destinations. Its National Media Group reaches 175 million unduplicated American consumers every month, including 80% of US millennial women.
The company also features robust brand licensing activities including more than 3,000 SKUs of branded products at 4,000 Walmart stores across the US and at walmart.com.