SYDNEY - Macquarie Media Group Ltd has acquired US newspaper publisher American Consolidated Media Inc for US$80 ($115.47) million.
ACM publishes 40 local newspapers which serve all or significant portions of nine regional communities in the US states of Texas and Oklahoma.
Macquarie Media managing director Alex Harveysaid the acquisition was part of a broader strategy to acquire and grow a portfolio of community newspaper businesses in the US.
"We have identified community newspapers as an asset class which meets our investment criteria, generating stable cash flows from Predominantly local advertisers, with low dependence on circulation and classified advertising, limited capex requirements and potential for earnings improvement through organic growth and consolidation," Mr Harvey said.
The purchase price for ACM and associated transaction costs will be funded by a refinance of the Macquarie Regional Radio Networks and the issue of Macquarie Media securities to some of ACM's existing investors.
Macquarie Media executive chairman Tim Hughes said the acquisition provides diversification to the group's existing assets, which include ownership of 85 Australian regional radio licences, a 60 per cent interest in pay-TV provider Taiwan Broadband Communications and a 13.8 per cent interest in Southern Cross Broadcasting.
ACM was acquired from shareholder groups including Halyard Capital and Arena Capital Partners and several New York and Boston-based private equity funds.
At 1344 AEDT (3.44pm NZT), Macquarie Media shares were down four cents at A$4.73.
