Gray Buying South Dakota Duo For $7.75M
Gray Television announced today that it is buying Fox affiliate KEVN Rapid City, S.D. (DMA 173), from Mission TV LLC for $7.75 million in cash. The transaction includes KEVN's satellite station in Lead, S.D., KIVV. Mission TV LLC is not affiliated with Mission Broadcasting Inc.
William Reyner, president of Mission TV, said: "Over the past 15 years, our dedicated staff has excelled in building and growing a Station committed to providing the finest service possible to the Black Hills. While the decision to sell is a difficult one, I am confident that Gray Television's resources, fine leadership and supportive management team will provide KEVN and its fine employees with tremendous opportunities to build upon their successes and better serve our loyal viewers."
Kevin Latek, Gray's SVP for business affairs, said: "We are excited to add to the Gray family another leading news station in the Upper Midwest, as well as our first stand-alone full-power Fox affiliate," said "We expect KEVN-TV will integrate well with our recently announced proposed acquisition of the ABC affiliate in Sioux Falls, S.D., and the NBC affiliates in the Fargo and the Minot-Bismarck, N.D., markets from Hoak Media," he added.
Gray said the transaction price represents a multiple of approximately 5.0 times a blended average of 2012-2013 pro forma broadcast cash flow of the stations including expected synergies. As such, it added, the purchase of the two stations “will be immediately free cash flow accretive” to Gray.
The transaction is subject to receipt of regulatory and other approvals and is expected to close in the first or second quarter of 2014. Additional terms were not disclosed.