(PRESS RELEASE) NEW YORK The McGraw-Hill Companies today announced a definitive agreement to sell its nine-station Broadcasting Group to The E. W. Scripps Company for $212 million in cash. The transaction is subject to regulatory approvals and customary closing conditions.
"This transaction is another step in executing McGraw-Hill's Growth and Value Plan for the benefit of our shareholders, customers and employees," said Harold McGraw III, chairman, president and chief executive officer. "This divestiture will produce good value for a non-strategic asset as we work to create two focused operating companies, one centered on capital and commodities markets and the other on digital learning and education services. Our goal is to enhance strategic and financial flexibility and to establish two pure-play investment opportunities for shareholders. The Growth and Value Plan also includes accelerated share repurchases and actions to increase efficiency and reduce overhead costs.
"I am proud of the contributions the Broadcasting Grouphas made during its rich history with McGraw-Hill. Scripps is a respected media company that will provide an excellent new home for our broadcasting stations and allow them to deepen their ties and value in the markets they serve," Mr. McGraw continued.
The Broadcasting Group includes ABC affiliates in Denver, Colorado (KMGH-TV), San Diego, California (KGTV), Bakersfield, California (KERO-TV), Indianapolis, Indiana (WRTV) and Azteca America affiliates in Denver, Fort Collins, Colorado Springs, San Diego and Bakersfield.
Morgan Stanley & Co. LLC acted as financial advisor to McGraw-Hill in the transaction.