New York—Dow Jones & Co., publisher of The Wall Street Journal
, announced a definitive agreement to sell six of its community newspapers to Community Newspaper Holdings for $282.5 million in cash, subject to a working capital adjustment.
Dow Jones said it expects the after-tax proceeds to be roughly $268 million, which will be used to fund its recently purchased 50% share of Factiva from Reuters and to pay down debt.
In a news statement, Dow Jones CEO Richard Zannino said the company is selling the newspapers for more than 11 times EBITDA (earnings before interest, taxes, depreciation and amortization).
The newspapers are: News-Times
of Danbury, Conn.; The Daily Star
of Oneonta, N.Y.; Press-Republican
of Plattsburgh, N.Y.; Santa Cruz (Calif.) Sentinel; The Daily Item
of Sunbury, Pa.; and the Traverse City (Mich.) Record-Eagle.
Following the transaction Dow Jones’ Local Media Group will continue to publish eight daily newspapers and 15 weekly newspapers with a combined daily circulation of 282,000 and Sunday circulation of 316,000.