Meredith Completes Acquisition Of Two TV Stations In Phoenix

(RTTNews) - Meredith Corp. (MDP) announced that it has completed the acquisition of the broadcast assets of two television stations in Phoenix from Gannett Co., Inc. (GCI) and Sander Media LLC for $230 million.

Included in the transaction are KTVK-TV, one of the nation's most successful independent stations and KASW-TV, a leading CW network affiliate. At closing, SagamoreHill of Phoenix, LLC simultaneously purchased certain assets of KASW. As part of Federal Communications Commission approval, Meredith and SagamoreHill have voluntarily agreed to divest KASW through a cash sale, swap transaction or combination thereof.

Meredith said the closing of the Phoenix transaction completes its previously announced agreement to purchase television assets in Phoenix and St. Louis from Gannett and Sander Media. Meredith closed on the acquisition of KMOV-TV, the CBS affiliate in St. Louis, on February 28, 2014.

Additionally, Meredith said it has entered into a definitive agreement to purchase the broadcast assets of WGGB-TV, the ABC affiliate in Springfield, Mass., from Gormally Broadcasting LLC for $53.8 million. Meredith expects this transaction to close in the third quarter of calendar 2014, subject to receipt of regulatory approval.

Also, Meredith continues to expect fiscal 2014 full year earnings per share to be about at the mid-point of the $2.60 to $2.95 range established at the beginning of fiscal 2014.

Meredith expects fourth quarter earnings per share to range from $0.81 to $0.86. These estimates are before special items, and exclude operating results and transaction expenses related to the acquisition of the television stations in Phoenix.