Gray swoops for $925 MN Quincy Media acquisition
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Editor
| 01 February 2021
In a deal that if completed will see it own television stations serving 102 television markets that collectively reach 25.4% of US television households, Gray Television has entered into an agreement to acquire Quincy Media (QMI) for $925 million in cash.
QMI Map 1Feb2021
Headquartered in Quincy, Illinois, QMI is a family-owned media company that owns and operates both television stations and local digital platforms in 16 markets primarily in the Midwest. Its portfolio includes the number-one ranked television station in 77 markets and the first and/or second highest ranked television station in 93 markets according to Comscore’s average all-day ratings for calendar year 2020.

Gray believes that the deep similarities between Gray and Quincy in terms of company cultures, award-winning journalistic commitments, and exceptional community service will help ensure a smooth integration of the acquired stations. At present Gray’s television stations broadcast over 400 separate programming streams, including roughly 150 affiliates of the Big Four broadcast networks. Gray also owns video programme production, marketing, and digital businesses including Raycom Sports, Tupelo- Raycom, and RTM Studios, the producer of PowerNation programmes and content.

“Many of our shareholders, board members and employees are descendants of two families who have been in the company for 95 years and in the media business for over 100 years,” said Ralph Oakley, president/CEO of QMI commenting on the deal. “The focus has always been on serving our communities with the best in news, public service and community involvement. It is a legacy of which we are very proud. While this is the end of a long and successful chapter, it also represents a wonderful new chapter for the communities we serve and our employees with the acquisition of the stations by Gray. They are great operators and people and our philosophies very much mirror one another.”

“We are honoured and humbled to be selected by Quincy’s shareholders to acquire their terrific company,” added Hilton H. Howell Gray’s executive chairman and CEO. “With the addition of these professionals and their stations, Gray will become a stronger company with an even larger platform of high quality television stations to better serve the public interest first.”

The parties expect to close their transaction following receipt of regulatory and other approvals in the second or third quarter of 2021. To facilitate prompt regulatory approvals, Gray has elected to divest Quincy’s television stations in select markets in which it also owns a full-power television station. Gray will also acquire a number of affiliate operations but will not acquire Quincy’s newspaper operations, which will be divested prior to the Gray/ Quincy closing.

Gray expects that the Quincy transaction will be immediately accretive to Gray’s free cash flow per share. Including expected year-one annualised synergies of approximately $23 million, the transaction purchase price represents a multiple of approximately 6.9 times a blended average of Quincy’s 2019/2020 earnings before interest, taxes, depreciation and amortisation.