(Reuters) ? McGraw-Hill Cos Inc, owner of Standard & Poor's credit rating agency, agreed to sell its nine-station broadcasting unit to media conglomerate E.W. Scripps Co for $212 million in cash.
McGraw-Hill said in June that it was putting the stations up for sale in what has become a major plan to split up the mini-conglomerate and sell its extraneous pieces.
"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," Chief Executive Harold McGraw said in a statement on Monday.
The stations, which include affiliates of Disney's ABC, had revenue in 2010 of $97 million, according to a statement from Scripps.
A person familiar with the transaction who was not authorized to speak on the record said the purchase price was 10 times cash flow, but that multiple could not be immediately confirmed.
"Important to investors will be the multiple of earnings they were sold for, which we don't have yet," stock analyst Peter Appert of Piper Jaffray & Co. said in an email.
McGraw-Hill did not say how much it expects to gain from the transaction after taxes. The company has owned the stations for many years, Appert said.
Last month the New York-based company said it will split into two listed companies, one holding its textbook publishing business and another holding Standard & Poor's and its smaller companies providing data to financial and commodity markets.
Morgan Stanley acted as financial adviser to McGraw-Hill in its deal with Scripps.
Shares of McGraw-Hill closed at $39.94, while those of Scripps closed at $6.74 on Monday on the New York Stock Exchange.
(Reporting by David Henry in New York and Satyanarayan Iyer in Bangalore; Editing by Maju Samuel and Steve Orlofsky)
steve mcnair nfl nfl chili recipe chili recipe frank gore frank gore
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.