McLean, Va.-based Gannett Co. Inc. has completed its $280 million acquisition of Milwaukee-based Journal Media Group Inc., parent company of the Milwaukee Journal Sentinel. The merger will be effective at 10:59 p.m.
The transaction has received shareholder approval and yesterday got the all clear from the U.S. Department of Justice to proceed.
Journal Media’s common stock has been delisted and will stop trading on the New York Stock Exchange.
“Today’s announcement marks an important milestone as we combine two award-winning media companies with a passion for delivering outstanding news and information, each focused on digital growth across all platforms and devices and being the market leaders in our communities,” said Robert Dickey, president and chief executive officer of Gannett.
“As the largest local-to-national media network in the U.S., this creates a portfolio of more than 100 local markets across the U.S., plus USA TODAY. By expanding our footprint, we further enhance the depth and breadth of our news-gathering capabilities, supported by USA TODAY NETWORK. Together we will grow our innovative products and best practices while providing added value to our consumers and advertisers, expanding the content offerings in our extensive portfolio and increasing the number of local markets we serve.”
Journal Media Group was formed in 2015 through the merger of Milwaukee’s Journal Communications and The E.W. Scripps Co. The newspaper and publishing operations were spun off and combined in the new Milwaukee-based company Journal Media Group, which has about 3,000 employees nationwide. The group includes the Milwaukee Journal Sentinel and its digital products, and daily newspapers and related digital offerings in 13 other U.S. markets, which include the Naples Daily News, the Knoxville News Sentinel and the Corpus Christi Caller-Times.
Gannett now oversees publications in 106 U.S. markets serving more than 100 million unique domestic digital visitors per month. Its flagship publication is USA Today, and it also owns several daily newspapers in Wisconsin. Gannett expects to add about $450 million to its revenues through the acquisition and about $60 million of adjusted EBITDA, including more than $10 million in “immediately available synergies,” with another $25 million in operating synergies expected over the next two years as the companies consolidate administrative and corporate operations, integrate with shared service centers and consolidate certain printing and distribution assets in adjacent markets.
