By: E&P Staff
Avista Capital Partners will officially get the keys to the Star Tribune in Minneapolis after the federal government approved the $530 million deal. The McClatchy Co. agreed to sell its largest paper to the private equity firm based in New York and Houston on Dec. 26.
The deal sailed by regulators with the Federal Trade Commission today.
McClatchy will realize $160 million in tax benefits from the sale. Executives said they plan to use the proceeds to pay down debt — about $3.3 billion — on the money borrowed to finance the Knight Ridder acquisition.
McClatchy bought the Star Tribune in 1998 for $1.2 billion from the Cowles Media Co.