Meredith Corp., the owner of KPHO, Channel 5, announced it will purchase Phoenix television station KTVK, Channel 3, expanding its footprint in the nation's 12th-largest TV market.
The purchase of KTVK is part of an agreement with Gannett Co., Inc., and Sander Media LLC to buy three TV stations in Phoenix and St. Louis for $407.5 million in cash.
Also included in the deal is KASW, the CW affiliate in Phoenix, and KMOV, a CBS affiliate in St. Louis.
The agreement was announced Monday morning.
"These acquisitions are consistent with our successful Total Shareholder Return strategy and will be immediately accretive to earnings, excluding upfront transaction costs," said Meredith Chairman and Chief Executive Officer Stephen M. Lacy.
"These are high-performing stations and will add to our already strong cash flow," Lacy said. "We will increase our presence in the large and growing Phoenix market, where we own KPHO, the CBS affiliate. KMOV (CBS) in St. Louis adds another Top 25 market to our portfolio, and when combined with KCTV (CBS) in Kansas City, gives us powerful local brands in two of the Midwest's top news and sports markets."
In the first full year after the deals close, the stations are expected to generate combined revenues of $105 million to $115 million, Meredith said in a news release.
The license and certain related assets of KASW will be purchased by SagamoreHill of Phoenix, LLC, and Meredith will provide certain services for the operation of KASW pursuant to a customary services agreement with SagamoreHill and in accordance with Federal Communications Commission local television ownership rules, according to the release.
The transactions are expected to close during the first half of calendar year 2014, subject to regulatory approvals and other customary closing conditions.
"These stations are terrific additions to our group," said Meredith Local Media Group President Paul Karpowicz. "The markets are growing and they are located in states with significant political advertising."
These are the latest in a series of media acquisitions by Meredith, including the purchase of Allrecipes.com, the world's largest digital food brand; and the addition of the Every Day with Rachael Ray, FamilyFun, EatingWell, Parenting and BabyTalk multi-platform brands to Meredith's portfolio, which reaches more than 100 million American women every month.
Copyright 2013 CBS 5 (KPHO Broadcasting Corporation). All rights reserved.
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