By: Lucia Moses
Following the announcement Thursday of the sale of its three Essex County Newspapers Inc. properties to the family-owned Eagle-Tribune Publishing Co., parent of The Eagle-Tribune in Lawrence, Mass., Dow Jones & Co. Inc. said it is finished paring its community newspaper group.
Upon completion of the deal, Dow Jones will have sold seven of its 19 Ottaway Newspapers Inc. dailies as part of a plan to eventually add to the group.
Eagle-Tribune’s acquisition would strengthen its standing in the Boston suburbs, which have become increasingly dominated by Herald Media Inc., parent of the Boston Herald, and the New York Times Co., parent of The Boston Globe.
Eagle-Tribune paid about $70 million in cash, or 2.5 times 2001 revenue, or 10.3 times 2001 earnings before interest, taxes, depreciation, and amortization.
Dow Jones expects to record an after-tax special gain of about $34 million related to the sale in the second quarter.