By: Lucia Moses
Ottaway Newspapers Inc. agreed to buy The Record of Stockton, Calif., from the Omaha World-Herald Co. for $144 million in cash. Dow Jones said it also paid a modest amount of net working capital, the difference between assets and liabilities.
The Record, with a circulation of 59,271 daily, 72,698 Sunday, would become Ottaway’s 15th daily and second in California after the Santa Cruz Sentinel. It would advance parent Dow Jones & Co.’s goal of adding to the community group after selling some slow-growth papers. The sale would also continue the World-Herald’s efforts to focus on the Midwest.
Dow Jones expects Stockton to generate $37 million in revenue and $12 million in EBITDA (earnings before interest, taxes, depreciation and amortization) in 2003. The deal is expected to close in the second quarter.
Santa Fe, N.M.-based broker Dirks, Van Essen & Murray represented the seller.