Employee-owned The Monroe News latest paper to be acquired by New Media Investment Group
The Monroe News, which serves southeastern Michigan, was sold to New Media Investment Group, which is the holding company for the GateHouse Media newspaper group. The Monroe News was an employee owned paper.
“The changing media environment has been very tough on single, stand-alone newspaper companies like us,” said Steve Gray, chairman of the MPC board of directors. “Despite the team’s best efforts, it became clear that our employee shareholders needed to be able to diversify their holdings.”
The paper was family-owned from its founding in 1927, becoming fully employee owned in 1999.
New Media Investment Group was created after GateHouse filed for Chapter 11 bankruptcy in September of 2013 when it listed assets of $433.7 million and debt of $1.3 billion. It was able to cancel much of its debt and has now gone on buying properties. New Media now owns 126 daily newspapers in 32 states.
Here is New Media’s acquisition announcement:
NEW YORK, NY – September 24, 2015 — New Media Investment Group Inc. announced today that it completed the acquisition of substantially all of the assets of the Monroe Publishing Company, including the daily newspaper, the Monroe News, for $5.2 million in cash, or 4.1x 2014 As Adjusted EBITDA. With its 190 year heritage, the Monroe News, located in southeastern Michigan, is the longtime newspaper of record in its community, and has a daily and Sunday circulation of approximately 14,000 and 21,000, respectively.
Michael E. Reed, President and Chief Executive Officer of New Media, commented, “Today’s announced acquisition highlights our continued success at purchasing high-quality, local media assets that fit well within our operating and financial metrics. The publications are located near our current cluster in Michigan which makes it the ideal tuck-in acquisition to integrate into our current operations. We are pleased to add this terrific newspaper and its employees into our growing New Media family.”