Gray Buys Three Montana Stations
Gray Television Inc. on Wednesday announced that it is buying three network-affiliated television stations in Montana for approximately $2,000,000.
Gray reached an agreement with Intermountain West Communications Co. for KTVH, the NBC affiliate in Helena, Mont. (DMA 205), and KBGF, the NBC affiliate in Great Falls, Mont. (DMA 190). Gray is also buying KMTF, the CW affiliate in Helena, from Rocky Mountain Broadcasting Co., subject to receipt of a "failing station waiver" from the FCC.
On June 1, Gray will begin operating the NBC stations pursuant to a local marketing agreement during the pre-closing period.
Lisa Howfield, the president-COO of Intermountain West, said: "Selling KTVH and KBGF is a bittersweet moment for IMW. We respect and value those stations tremendously. On the other hand, we are excited that they will be joining a group of broadcasters who share our commitment to localism.”
"Gray is thrilled to again expand our portfolio of leading television stations," said Kevin Latek, Gray's SVP for business affairs. "KTVH in particular complements Gray's announced acquisition strategy well, because this No. 1-ranked station in a state capital is intimately involved with the local community and in fact broadcasts from a studio located on the campus of Carroll College in downtown Helena."
Gray said the acquisitions of KTVH, KBGF and KMTF will be immediately free cash flow accretive. The transactions are subject to receipt of regulatory and other approvals, and Gray said it anticipates that the transactions will close in the second or third quarter.
Kalil & Co. represented the sellers.