Once the proposed merger with Journal Media Group is completed, the combined company “will benefit from the consolidated functions Gannett has established over the last several years,” Gannett said. When the split was announced in August 2014, then-Gannett executives said the new Gannett would begin operating largely without debt and was poised to be an acquirer in an industry ripe for consolidation. We welcome the employees of the Journal Media Group into the Gannett family and look forward to continuing to be an industry leader." This transaction will allow us to focus on creating quality journalism for our communities while building substantial value for our shareholders. “Just over 100 days ago we laid out the importance of expanding our local market footprint and we are very pleased that our acquisition strategy has kicked off with such a highly regarded company. "Gannett is excited to be joining forces with an organization that is so respected by their communities and industry," said Gannett CEO Robert Dickey. Star publisher: Thank you, Indy, for a great year Gannett, based in McLean, Va., will finance the deal through cash and borrowing under the company’s $500 million revolving credit line.
Shares of Gannett closed at $14.94, up almost 4 percent. It was approved by both companies’ boards of directors and is subject to approval by Journal Media Group shareholders. The deal is expected to close in the first quarter of 2016.
Journal Media Group owns the 178-year-old Milwaukee Journal Sentinel, The Commercial Appeal of Memphis, 13 other daily newspapers, 18 weeklies and their affiliated websites in 14 local markets in the U.S. That is a 45 percent premium from the Wednesday closing price of $8.30. Shareholders of Milwaukee-based Journal Media Group, which owns the Evansville Courier & Press in Indiana, will receive $12 a share in cash. Gannett, the publishing company that owns USA TODAY, The Indianapolis Star and media businesses in 91 other news properties, said late Wednesday that it has agreed to buy Journal Media Group for about $280 million, following through on its strategy of acquiring additional local news outlets after it was spun off from its former parent in June.
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