Sinclair Broadcast to buy 7 TV stations for $452.5 million
(Reuters) - U.S. TV station owner Sinclair Broadcast Group Inc said it will buy broadcast assets of seven television stations for $452.5 million in two separate deals.
The company said it will buy six TV stations from Newport Television located in five states -- Ohio, Texas, Pennsylvania, Florida, Kansas -- reaching 3 percent of the U.S. TV households.
The stations will add between $55 million and $60 million to Sinclair's pro forma TV operating cash flow for 2012 and 2013.
Sinclair also agreed to buy assets of Bay Television Inc, which owns WTTA-TV in the Florida market, for $40 million.
The company, which is present in 45 U.S. markets by either operating or being associated with 74 television stations, said it expects to finance the deals through cash on hand along with a bank loan or by accessing the capital markets.
Sinclair, which acquired 23 television stations in the last one year, said it expects the Newport deal to close by December.
Newport Television, a group of 56 stations owned by buyout shop Providence Equity Partners, retained Moelis & Co to "explore strategic alternatives" including a possible sale of the company, Reuters reported in March citing sources.
In November, Sinclair bought eight television stations for $385 million from Freedom Communications.
Shares of Baltimore-based Sinclair opened at $9.77, down about 1 percent, on the Nasdaq on Thursday.
(Reporting by Supantha Mukherjee in Bangalore; Editing by Rodney Joyce and Joyjeet Das)