By: E&P Staff
GateHouse Media, the big community newspaper chain, said Monday it had signed a definitive agreement to buy SureWest Directories for $110 million. The purchase includes working capital of $3.5 million, giving the deal a net purchase price of $106.5 million.
SureWest publishes yellow page and white page directories in the Sacramento, Calif., market.
The purchase means GateHouse becomes the publisher of the official directory of SureWest Telephone.
The transaction is expected to close by the end of the first quarter.
“This is a superb local content and advertising business with an attractive future, especially given its presence in the high growth Sacramento market,” GateHouse Media CEO Mike Reed said in a statement. “The acquisition fits extremely well within GateHouse’s strategy and demonstrates our ability to expand our platform into local media businesses that have strong and stable cash flow which is accretive to our shareholders.”