Gannett acquires complete ownership of Texas-New Mexico Newspaper Partnership from Digital First Media
Deal comes a couple weeks after DFM failed to close a sale of its entire portfolion of newspapers to the private equity company Apollo Global Management
The deal that would have sold all the Digital First Media properties to a private equity company collapsed just two weeks ago, and now the first piecemeal sales of newspapers has been initiated as Gannett announced tht it would buy its remaining interest in the Texas-New Mexico Newspapers Partnership and the surrendering of its interst in the California Newspapers Partnership.
The deal would have made sense at any time, but is especially an easy one to complete now that the deal for all of DFM has fallen through.
Does this mean we will start to see the unwinding of DFM through the sales of individual properties and groups? Maybe. Or this is simply the kind of step DFM had to make to make it easier to complete a sale of the company as a whole. We’ll see soon as there are plenty of interesting newspapers in the DFM portfolio.
DFM CEO John Paton will be leaving the company on June 30, to be replaced by the current COO, Steve Rossi.
Here is Gannett’s announcement today on the deal with DFM:
MCLEAN, Va. – June 1, 2015 — Gannett Co., Inc. today announced that it has completed the acquisition of the remaining 59.36% interest in the Texas-New Mexico Newspapers Partnership that it did not own from Digital First Media. The deal was completed through the assignment of Gannett’s 19.49% interest in the California Newspapers Partnership and additional cash consideration. As a result, Gannett will own 100% of the Texas-New Mexico Newspapers Partnership and will no longer have any ownership interest in California Newspapers Partnership.
The news organizations acquired and the three states in which they reside include:
- Texas — El Paso Times;
- New Mexico — Alamogordo Daily News; Carlsbad Current-Argus; The Daily Times in Farmington; Deming Headlight; Las Cruces Sun-News; Silver City Sun-News;
- Pennsylvania — Chambersburg Public Opinion; Hanover Evening Sun; Lebanon Daily News; and the York Daily Record.
“We are very pleased to welcome these well-respected media organizations to U.S. Community Publishing as we further our efforts to expand our reach as the best local media company in America for consumers and businesses,” said Robert Dickey, president of U.S. Community Publishing and CEO-designate of Gannett “SpinCo” following the separation of the company mid-2015. “There is no media company in America that knows local communities better and with USA TODAY, the company has outstanding national to local scale.”
With this acquisition, the publishing segment of Gannett provides hundreds of outstanding affiliated digital, mobile and print products in 92 local markets throughout 33 states plus Guam, and in 16 markets in the U.K.