2013 is shaping up to be the year of the TV station sale.
The station buying spree continues, Nexstar Broadcasting Group said today that its long-rumored acquisition of Communications Corp. of America is indeed a fact.
The Irving, Texas-based station group said today that it and duopoly partner Mission Broadcasting have agreed to pay $270 million to CCA and its duopoly partner, White Knight Broadcasting, for 19 stations in 10 markets.
So that Nexstar can operate duopolies in seven of the markets in compliance with local FCC ownership limits, Mission will hold the licenses of eight of the stations.
The CCA group currently includes five duopolies. The deal will create two additional ones in Shreveport, La., and Odessa-Midland, Texas, where Nexstar already has stations.
Upon closing, expected in October, the acquisition will expand the Nexstar/Mission portfolio to 91 stations in 48 markets reaching approximately 13.9% of all U.S. TV households.
Nexstar projects that the stations will contribute around $100 million in net revenue and, given $12.5 million in projected synergies, generate more than $50 million in additional broadcast cash flow.
The purchase price represents a buyer's multiple of approximately 5.7 times the average 2012-2013 broadcast cash flow, assuming operating improvements and other synergies, Nexstar said.
"The acquisition significantly expands our revenue and operating base with stations where we can quickly apply our operating and management disciplines to meaningfully improve their performance which we believe will result in significant free cash flow accretion immediately upon closing," said Nexstar CEO Perry Sook in a prepared statement.
"The addition of the CCA stations builds further scale and operating leverage and represents another excellent opportunity for Nexstar to expand our footprint and portfolio in attractive and highly complementary markets."
CCA/White Knight TV Stations
KMSS Shreveport, LA (DMA 83) Fox
KSHV Shreveport, LA (83) MNT
KVEO Harlingen, TX (86) NBC-Estrella
KWKT Waco, TX (88) Fox-MNT-Estrella
KYLE Waco, TX (88) Fox-MNT-Estrella
KTSM El Paso, TX (91) NBC-Estrella
WGMB Baton Rouge, LA (94) Fox
WBRL-CD Baton Rouge, LA (94) CW
WVLA Baton Rouge, LA (94) NBC
KZUP Baton Rouge, LA (94) RTV
WEVV Evansville, IN (104) CBS-Fox-MNT
KETK Tyler, TX (107) NBC-Estrella
KFXK Tyler, TX (107) Fox
KFXL-LD Tyler, TX (107) Fox
KLPN-LD Tyler, TX (107) MNT
KADN Lafayette, LA (124) Fox
KLAF-LD Lafayette, LA (124) MNT
KPEJ Odessa, TX (152) Fox-Estrella
WNTZ Alexandra, LA (170) Fox-MNT