|Journal Community Publishing Group Agrees to Sell its Connecticut and Vermont Clusters to Hersam Acorn Community Publishing and its Central Ohio Advertiser Network and Advantage Press to Gannett Co.|
MILWAUKEE--(BUSINESS WIRE)--June 19, 2007--Journal Community Publishing Group, Inc. (JCPG), a Journal Communications, Inc. (NYSE:JRN) company, announced today that it has signed definitive agreements to sell its publishing and printing assets in Connecticut, Vermont and Ohio.
Under the New England agreement, Hersam Acorn Community Publishing, LLC will acquire the assets of JCPG's Connecticut and Vermont clusters -- consisting of 11 community papers, two printing facilities (in Trumbull, CT and Bennington, VT) and five shopper products. The Connecticut operations do business under the names "Hometown Publications" and "Trumbull Printing."
Under the Ohio agreement, Gannett Co., Inc. (NYSE:GCI) will acquire JCPG's Central Ohio Advertiser Network -- consisting of eight weekly shoppers and numerous specialty print products -- and its commercial printing business, Advantage Press.
On June 13, JCPG said it had agreed to sell its Louisiana-based publishing business to a Target Media Partners affiliate. In aggregate, the sales price for the assets of the New England, Ohio and Louisiana clusters approximates $30 million, subject to certain working capital adjustments.
The parties anticipate closing the transactions as quickly as possible.
"With the planned divestiture of our New England- and Ohio-based publishing and printing operations, as well as the recently announced pending sale of our Louisiana publishing business, Journal Community Publishing Group is now strategically positioned to turn its focus to deepening our media offerings in our vital Wisconsin and Florida markets," said Elizabeth (Betsy) Brenner, president and chief operating officer of Journal Communications' publishing group.
David Honan, vice president, general manager and chief financial officer of Journal Community Publishing Group, added, "Our Connecticut, Vermont and Ohio employees have dedicated many years of service to our organization, and we thank them for their hard work and commitment to producing high-quality products for all of our customers."
For Journal Communications' financial reporting purposes, the New England and Ohio publishing and printing operations, along with the Louisiana operations, will be treated as discontinued operations beginning in the second quarter of 2007.
Dirks, Van Essen and Murray advised Journal Communications on both the New England and Ohio transactions.
This press release contains certain forward-looking statements related to our businesses that are based on our current expectations. Forward-looking statements are subject to certain risks, trends and uncertainties, including changes in advertising demand and other economic conditions that could cause actual results to differ materially from the expectations expressed in forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Our written policy on forward-looking statements can be found on page 1 of our most recent Annual Report on Form 10-K as filed with the Securities and Exchange Commission.
About Hersam Acorn Community Publishing
Hersam Acorn Community Publishing is a family-owned company publishing eight award-winning weekly newspapers in Fairfield County, Connecticut and Westchester County, New York.
Gannett Co., Inc. is a leading international news and information company that publishes 85 daily newspapers in the USA, including USA TODAY, the nation's largest-selling daily newspaper. The company also owns nearly 1,000 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. Gannett subsidiary Newsquest is the United Kingdom's second largest regional newspaper company. Newsquest publishes nearly 300 titles, including 18 daily newspapers, and a network of prize-winning Web sites. Gannett also operates 23 television stations in the United States and is an Internet leader with sites sponsored by its TV stations and newspapers including USATODAY.com, one of the most popular news sites on the Web.
About Journal Communications
Journal Communications, Inc., headquartered in Milwaukee, Wisconsin, was founded in 1882. We are a diversified media company with operations in publishing, radio and television broadcasting, interactive media and printing services. We publish the Milwaukee Journal Sentinel, which serves as the only major daily newspaper for the Milwaukee metropolitan area, and 75 community newspapers and shoppers in eight states. We own and operate 35 radio stations and ten television stations in 12 states and operate one television station under a local marketing agreement. Our interactive media assets include more than 75 online enterprises that are associated with our daily and community newspapers, television and radio stations. We also provide a wide range of commercial printing services -- including printing of publications, professional journals and documentation material -- and operate a direct marketing services business.
CONTACT: Journal Communications, Inc.