Journal Broadcast Group, a subsidiary of Milwaukee news company Journal Communications Inc., has announced it will acquire WTVF NewsChannel 5 Network in Nashville, Tenn.
The CBS affiliate is owned by Landmark Media Enterprises LLC, with which Journal Broadcast has entered into a definitive agreement for $215 million in cash and a working capital adjustment. The deal is awaiting FCC approval.
The award-winning station’s network includes Newschannel 5 (WTVF), NewsChannel 5+, a This TV affiliate (D3) and NewsChannel5.com, a site that leads the local news market.
“We are especially pleased to reach an agreement to purchase NewsChannel 5 in Nashville,” said Steven J. Smith, Chairman and CEO of Journal Communications. “This station will be a cornerstone asset within Journal Communications. WTVF TV is an exceptional local news station with an extraordinary staff that demonstrates its commitment to Nashville every single day. We are delighted to welcome NewsChannel 5’s outstanding team to Journal.”
The transaction will be completed with available cash on hand and using Journal’s revolving credit facility as a stock purchase structure, but treated as a purchase of assets under federal tax regulations.
Journal will take advantage of an “accordion” feature in the credit facility, which provides for $325 million total.
“We are excited to add a top television station with a high performing team in one of the best markets in America to Journal’s TV and radio portfolio,” said Andre Fernandez, Journal’s President and CFO. “This acquisition also allows us to broaden our TV base with a high quality television asset, and is consistent with our strategy of increasing Broadcast’s overall contribution to Journal’s earnings and cash flow.”