By: E&P Staff It's official. McClatchy has agreed to sell The Times Leader in Wilkes-Barre, Pa. to Richard Connor and a group of investors for approximately $65 million.
Connor served as president and publisher of the Times Leader in 1978 to 1986 and is chairman of Texas Community Newspapers in Ft. Worth, Texas. He teamed up with investors and HM Capital Partners in Dallas to form The Wilkes-Barre Publishing Co.
?We were particularly pleased to find buyers with community roots and direct experience with the Times Leader,? said McClatchy?s CEO Gary Pruitt in a statement. ?Experienced management and committed owners will serve them well.?
McClatchy announced in March it would acquire Knight Ridder for $6.5 billion. As part of the deal, McClatchy said it hoped to divest 12 Knight Ridder papers for roughly $2.15 billion. With the sale of the Times Leader -- the last paper divested -- McClatchy stands to receive $2.1 billion, a total multiple that represents 11 times their cash flow. (McClatchy acquired Knight Ridder for 9.5 times).
Today, Knight Ridder shareholders are expected to approve the deal during an annual meeting in San Jose.
McClatchy said in a statement that at the request of the buyer, no sales multiple for the Times Leader was released. Dirks Van Essen & Murray served as a broker to McClatchy in this transaction.
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