A. H. Belo Corporation to Sell Providence Newspaper Operation to New Media Investment Group Inc.
July 22 2014 - 5:43PM
Business Wire
A. H. Belo Corporation (NYSE: AHC) announced today it has
entered into a definitive asset purchase agreement under which a
subsidiary of New Media Investment Group Inc. (New Media) will
acquire substantially all of the assets which comprise the
newspaper operations of The Providence Journal located in
Providence, Rhode Island, including the production facility and
related land, for $46 million in cash before usual closing costs.
A. H. Belo will retain sponsorship of the defined benefit pension
plan for Providence employees.
The 75 Fountain Street headquarters building, the downtown
parking lots and the former Rhode Island Monthly / Sunday inserting
building are not included in the transaction. A. H. Belo will
continue to own and market these properties for sale. New Media is
expected to lease the headquarters building and parking lots for
one year after the close of the transaction, which is anticipated
to occur in the third quarter subject to customary closing
conditions. Stephens Inc. served as exclusive financial advisor to
A. H. Belo on the transaction.
About A. H. Belo
Corporation
A. H. Belo Corporation (NYSE: AHC) is a leading local news and
information publishing company with commercial printing,
distribution and direct mail capabilities, as well as businesses
with expertise in emerging media and digital marketing. With a
continued focus on extending our media platform, we are able to
deliver news and information in innovative ways to new audiences
with diverse interests and lifestyles. For additional information,
visit ahbelo.com, email invest@ahbelo.com.
Statements in this communication concerning A. H. Belo
Corporation's (the “Company's”) business outlook or future economic
performance, anticipated profitability, revenues, expenses,
dividends, capital expenditures, investments, impairments, business
initiatives, pension plan contributions and obligations, real
estate sales, future financings, and other financial and
non-financial items that are not historical facts, are
“forward-looking statements” as the term is defined under
applicable federal securities laws. Forward-looking statements are
subject to risks, uncertainties and other factors that could cause
actual results to differ materially from those statements.
Such risks, uncertainties and factors include, but are not
limited to, changes in capital market conditions and prospects, and
other factors such as changes in advertising demand and newsprint
prices; newspaper circulation trends and other circulation matters,
including changes in readership methods, patterns and demography;
and audits and related actions by the Alliance for Audited Media;
challenges implementing increased subscription pricing and new
pricing structures; challenges in achieving expense reduction goals
in a timely manner, and the resulting potential effects on
operations; technological changes; development of Internet
commerce; industry cycles; changes in pricing or other actions by
existing and new competitors and suppliers; consumer acceptance of
new products and business initiatives; labor relations; regulatory,
tax and legal changes; adoption of new accounting standards or
changes in existing accounting standards by the Financial
Accounting Standards Board or other accounting standard-setting
bodies or authorities; the effects of Company acquisitions,
dispositions, co-owned ventures, and investments; pension plan
matters; general economic conditions and changes in interest rates;
significant armed conflict; acts of terrorism; and other factors
beyond our control, as well as other risks described in
the Company's Annual Report on Form 10-K, and in the Company's
other public disclosures and filings with the Securities and
Exchange Commission.
A. H. Belo CorporationAlison K. Engel, 214-977-2248Senior Vice
President/Chief Financial Officerwww.ahbelo.com
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