New Media Announces Acquisition
Company Release - 03/03/2014 07:45
NEW YORK--(BUSINESS WIRE)-- New Media Investment Group Inc., (“New Media” or the “Company”; NYSE:NEWM), announced today that it acquired the Victorville Daily Press along with other publications and related assets from Freedom Communications for a purchase price of $8.0 million. The publications are located in and around Victorville, California with a circulation of about 50,000.
“This is the first acquisition by New Media,” said Mike Reed, Chief Executive Officer of New Media. “The Victorville Daily Press and related publications meet the criteria we look for in an acquisition, including market size, a solid retail base, the opportunity to leverage New Media’s infrastructure to grow digital revenue and our financial criteria. With revenue of about $12.5 million and operating margins before depreciation and amortization of slightly more than 20%, we expect the transaction to be immediately accretive to our results.”
Kirk Davis, Chief Operating Officer of New Media, added, “I am thrilled that the Victorville publications will be part of New Media. This is a strong local franchise with a long history as the primary source of news and information serving the local communities. We are excited to work with the Victorville team and look forward to enhancing the partnership they have with their communities.
Talk about wasting no time. Looks like this guy is making a statement about his intentions. I was hoping the stock would go down to10 so I could add some shares to round out my share number but it doesn't look like that will happen. Maybe after the first big dividend it will go down a bit , think I'm hoping for 12.5 now.
Acquisition costs 8M, revenues of 12.5 with a return before depreciation and amortization of about 20%. 2.5/8 = 31.25% return before non-cash expenses! Wish I could personnally find some of these deals! LOL