Journal Register Company Agrees to Sell Massachusetts Newspapers
YARDLEY, PA, December 1, 2006 - Journal Register Company today announced that it has signed a definitive agreement to sell two of its New England Cluster community newspapers to GateHouse Media for approximately $70 million in cash. The two daily newspapers included in the sale are the Fall River (MA) Herald News, with circulation of 20,932, and the Taunton (MA) Daily Gazette, with circulation of 9,437. Additionally, the sale will include five non-daily publications. The transaction is expected to close by the end of the year and is subject to regulatory approvals and other customary closing conditions.
Dirks, Van Essen & Murray, a newspaper merger-and-acquisition firm based in Santa Fe, New Mexico, represented Journal Register Company in the transaction.
Robert M. Jelenic, Chairman and CEO of Journal Register Company, said, “We thank all of our talented employees at our Massachusetts newspapers for their contributions over the years and wish them all well.”
"We are looking forward to completing this strategic addition to our local media portfolio and the accretive impact these assets will have on free cash flow per share," said Michael E. Reed, CEO of GateHouse Media. "The Fall River and Taunton assets fit extremely well with our existing base of Massachusetts-area publications and are the premiere local media franchises in their respective markets. In addition, due to their proximity to our existing operations, we will be able to benefit from the cost savings and revenue generation opportunities that are inherent in being part of a cluster."
Journal Register Company is a leading US newspaper publishing company. Journal Register Company owns 27 daily newspapers and 366 non-daily publications. Journal Register Company currently operates 231 individual websites that are affiliated with the company’s daily newspapers, non-daily publications and its recently acquired network of employment websites. These websites can be accessed at www. journalregister.com. All of the company's operations are strategically clustered in seven geographic areas: Greater Philadelphia; Michigan; Connecticut; Greater Cleveland; New England; and the Capital-Saratoga and Mid-Hudson regions of New York. The company owns JobsInTheUS, a network of seven premier employment websites in the Northeast.
GateHouse Media, Inc., headquartered in Fairport, New York, is one of the largest publishers of locally based print and online media in the United States as measured by number of daily publications. GateHouse Media now owns over 415 community publications located in 18 states across the country, and more than 230 related websites reaching approximately 9 million people on a weekly basis. GateHouse Media is traded on the New York Stock Exchange under the symbol "GHS".
For further information contact Owen Van Essen at Dirks, Van Essen & Murray, (phone) 505-820-2700, (fax) 505-820-2900, or visit our website at www.dirksvanessen.com.