Glacier To Acquire Portfolio Of B.C. Media Assets From Postmedia
Vancouver, B.C., October 18, 2011— (TSX:GVC) Glacier Media Inc. is pleased to announce that, through its affiliates (collectively “Glacier” or the “Company”), it has entered into definitive agreements with Postmedia Network Inc. (“Postmedia”) to acquire Postmedia’s community newspapers in British Columbia, the Times Colonist, related digital media assets, and certain real estate assets.
The community newspaper media assets are comprised of two groups – the Lower Mainland Publishing Group (“LMP”) and the Vancouver Island Newspaper Group (“VING”). The LMP properties include the North Shore News, the Vancouver Courier, the Burnaby Now, the New Westminster Record/Royal City Record, the Richmond News, the Delta Optimist, the Surrey Now, the Coquitlam Now, the Maple Ridge Times, the Langley Advance, the Abbotsford Mission Times, and the Chilliwack Times. The VING properties include the Nanaimo Daily News, the Alberni Valley Times, the Harbour City Star, the Cowichan Valley Citizen, the Oceanside Star, the Pennyworth, the Westerly News, and the Campbell River Courier Islander/Campbell River Courier North Islander.
The Times Colonist was founded in 1858 and serves Victoria, British Columbia’s capital and Vancouver Island. It is one of Canada’s oldest, most respected and award winning newspapers.
The purchase price for the acquired media assets and significant real estate properties is $86.5 million payable in cash at closing, subject to adjustment for working capital. The acquisition will be financed with bank borrowings. Glacier is amending its credit facilities to fund the acquisition of the assets and provide additional borrowing capacity for ongoing acquisition opportunities.
The assets acquired strategically broaden Glacier’s market presence in British Columbia. Glacier now offers the broadest coverage of local newspaper markets in Western Canada, which increases market reach for local, regional and national advertisers, provides for significant digital media opportunities and strengthens Glacier’s competitive position. The operations acquired also enhance the Company’s depth of personnel and operating resources and offer attractive synergy opportunities.
While the acquisition significantly strengthens the Company’s community newspaper and digital operations, Glacier intends to continue to build its business information operations (which include its trade and business & professional information properties) with particular focus on digital and rich information opportunities.
Management will focus in the short-term on a balance of paying down debt, integrating the operations acquired, continuing to develop existing operations, targeting select acquisition opportunities and returning value to shareholders. While the transaction is being financed with bank borrowings, Glacier will be in a stronger position as a result of the acquisition with manageable debt levels and increased cash flow. In addition to operational needs and acquisitions, a portion of any increased cash flow could be returned to shareholders in the future through share buy backs and increased dividends.
The transaction is expected to close on or about November 30, 2011 and is conditional upon regulatory and other customary approvals.
Shares in Glacier can be traded on the Toronto Stock Exchange under the symbol GVC.
For further information please contact Mr. Orest Smysnuik, Chief Financial Officer, at 604-708-3264.
About the Company: Glacier Media Inc. is an information communications company focused on the provision of primary and essential information and related services through print, electronic and online media. Glacier Media Inc. is pursuing this strategy through its core businesses: the local newspaper, trade information and business and professional information markets.
Forward Looking Statements
This news release contains forward-looking statements that relate to, among other things, the Company’s objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates. These forward-looking statements include statements relating to the anticipated completion of the acquisition. These forward looking statements are subject to risks, uncertainties and other factors which may cause results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, and undue reliance should not be placed on such statements.
Important factors that could cause actual results to differ materially from these expectations are listed in the Company’s Annual Information Form under the heading “Risk Factors” and in the Company’s MD&A under the heading “Business Environment and Risks”, many of which are out of the Company’s control. These factors include, but are not limited to, closing risks and risks relating to the integration of new businesses.
The forward-looking statements made in this news release relate only to events or information as of the date on which the statements are made. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.