Twelve Dailies Sold By Cribb, Greene & Cope 11/20/15, 10:12 AM A"Report"on"Merger,"Acquisition"and"Valuation"Activity in"Print"and"Digital"Publishing Cribb Greene Cope Report November, 2015 Newspaper sale activity continues at an extreme pace Stories in this Report Cribb, Greene & Cope closes Home News sells to transactions on twelve dailies, six AIM Idaho Falls sells to more pending Adams Loudon Times-Mirror The newspaper sale market has been extremely active in the buys weeklies second half of 2015. CG&C has just completed the sale of twelve daily newspapers in five separate Shamokin, Towanda PA transactions, each with accompanying weekly dailies sold to Sample papers. Six additional daily newspapers in four Four Wyoming dailies transactions are currently in the final due diligence sold to Adams process. Ohio weekly cluster Selling prices for CG&C properties are considerably above sold to MCM Ohio the "typical" market values of 3.5x to 4.5x trailing EBITDA, Frankfort, KY daily sold and currently average 6x EBITDA. These strong valuations to Boone appear to be both due to the high quality of these newspapers and markets, and a shift in the valuation methodology used by CGC Client Comments some buyers. Rather than basing value on a multiple of Appraisal trailing EBITDA these buyers are determining the EBITDA under their ownership, and then applying a multiple. The Consulting result can be a much higher multiple of trailing EBITDA. This Market at a Glance: shift began in the 4th quarter of 2014 and has carried through valuation 2015. considerations Cribb Greene Team Home News Enterprises and the Brown Family sell Indiana dailies Columbus, Greenfield, Franklin https://ui.constantcontact.com/visualeditor/visual_editor_preview.jsp?agent.uid=1122777439229&format=html&printFrame=true Page 1 of 14 Twelve Dailies Sold By Cribb, Greene & Cope 11/20/15, 10:12 AM and Seymour, Indiana dailies sell to AIM Media AIM Media Indiana, LLC announced that is has acquired the print and online Client newspaper publishing assets and the Comments commercial printing assets from Home The Cribb, Greene & Cope News Enterprises, LLC ("HNE") of commitment is to do the best Columbus, Indiana, according to John job for our client in every Cribb, Cribb, Greene & Cope who assignment. We are represented HNE in the transaction. fortunate to work with the Terms of the transaction were not excellent companies and individuals whose comments disclosed. In conjunction with the are provided at the end of transaction, AIM announced that all this Cribb Greene Cope Home News Enterprises employees Report. will be hired and continue in their respective jobs and positions with the new Company. The publications and affiliated web-sites included in the Market transaction are four daily newspapers in Columbus, IN (The at a Glance Republic), Greenfield, IN (The Daily Reporter), Franklin, IN (The Daily Journal), and Seymour, IN (The Tribune); two EBITDA valuation weeklies in Pendleton, IN (The Times Post) and Nashville, IN multiples for mid and (The Brown County Democrat); a variety of other weekly, small market papers monthly and shopper publications and related web-sites; and, range from 3x to 6x a commercial printing business serving a broad range of Publishing company values clients. are currently in the 3x to 6x trailing EBITDA range with "Home News Enterprises has long been one of the most most transactions at 3.5x to respected and admired publishing and media companies in 4.5x. Cribb, Greene & Cope transactions are well above the United States," said Jeremy L. Halbreich, Chairman and this level with an average of CEO of AIM and the former Chairman & CEO of Sun-Times over 6x trailing EBITDA. Media LLC (Chicago), former Founder, Chairman, President & Prices over 5x tend to be CEO of American Consolidated Media (Dallas), and former strategic acquisitions. Buyers President and General Manager of the The Dallas Morning typically look at the most recent performance, and the News. "I had the great pleasure and privilege of knowing multiples indicated here are Robert N. Brown and recently my associate Rick Starks based on stable or improving (President and COO of AIM) and I have had the wonderful performance. Companies opportunity to become well acquainted with Jeffrey N. Brown. with declining revenues and We have great admiration for Jeff and for his leadership at EBITDA, or that have high EBITDA percentages to Home News these past 20+ years and we are very flattered to revenues, tend to be valued have this opportunity to become directly involved with these at the lower end of the important, high-quality, local journalism operations. We are multiple scale. also pleased to announce that Jeff will remain with the https://ui.constantcontact.com/visualeditor/visual_editor_preview.jsp?agent.uid=1122777439229&format=html&printFrame=true Page 2 of 14 Twelve Dailies Sold By Cribb, Greene & Cope 11/20/15, 10:12 AM Company and retain his current set of operating Some of these transactions responsibilities," He added. include seller financing "The Brown family has demonstrated extraordinary commitment, support and leaderships to these local communities throughout their six generations of ownership. It is our goal and strongest desire to continue this community service and we look forward to providing the guidance and direction necessary for these publications to engage their local audiences and set the civic agenda and discourse in Publishing*company*brokerage, both online and print for the communities they serve," appraisal*and*consulting*since Halbreich added. "These are important, impactful and 1923 attractive businesses located in an extraordinary and unique CG&A Team group of towns in southern Indiana," Halbreich added. "These publications and the service they provide their Contact Cribb Greene respective communities in Indiana represent a great "Our commitment is to do the testimony to the hard work, dedication and true community best possible job for our service established and maintained by the Brown family over client in every aspect of our assignment." many decades in conjunction with their talented staff of dedicated employees. We are gratified by the Brown family's confidence in us as publishers of local, community newspapers to build on their heritage, traditions and focus on Transactions: community service," Halbreich concluded. Farmville Herald Jeff Brown added, "There comes a point in time in older multi- Farmville, Virginia generational family businesses where family members, many Farmville Newsmedia, LLC, a of whom are in or near retirement, need to exit from their new Virginia entity wholly owned by Carpenter ownership in order to pursue other interests. AIM came to us Newsmedia, LLC (CNL), with a compelling offer that helps to preserve HNE's local purchased The Farmville autonomy. We came to appreciate AIM's focus on the Herald from the Wall family importance of local newspapers and our commercial printing on Friday, according to Gary operations. AIM brings the potential to continue HNE's growth Greene of Cribb, Greene & Associates. CNL is an in both media properties and commercial printing services. affiliate of Boone Our family is incredibly appreciative of the support of our Newspapers, Inc. (BNI) with communities and our customers through the years. It's been a offices in Natchez, great run and we know that AIM will continue in that same Mississippi and Tuscaloosa, tradition." Alabama. The Brady Family and ESOP sell after ninety years Idaho Falls daily and related weeklies sell to Adams Publishing Group The sale ends three https://ui.constantcontact.com/visualeditor/visual_editor_preview.jsp?agent.uid=1122777439229&format=html&printFrame=true Page 3 of 14 Twelve Dailies Sold By Cribb, Greene & Cope 11/20/15, 10:12 AM generations of ownership by the Wall family. The Post Co. which includes the daily Idaho Falls Post "The Herald celebrates its Register and three weekly newspapers in Shelley, Challis, 125th birthday in 2015 and and Rigby Idaho has been sold by the Brady family to Adams the 94th year the paper has Publishing Group LLC, according to John Cribb, Cribb Greene been published by the Wall & Cope who represented the sellers in the transaction. family," commented third generation publisher Steve Wall, whose grandfather J.B. The Post Co. has been a family-run Wall purchased the business passed down through the newspaper in 1921. "The Brady family since 1925. Brady, 79, industry has undergone previously said that he felt he had major changes in the last nothing more to add to the company, couple of years. My dad Bill, who joined the staff in 1954, and although the decision was difficult, is planning to completely he was convinced selling the company retire and after 37 years in was the right thing to do. "We have the business full time I'm done our very best during hard times," ready for another newspaper Brady said in a Wednesday letter to family to take the helm." employees. "I believe we have found Daily News the best possible buyer, a buyer who is Worland, WY investing in our industry when others After 75 years of ownership, are not." the Wyoming Newspaper Group has sold the Northern Wyoming Daily News "We're very excited to have the Post according to John Cribb, Register Company's group of newspapers and digital Cribb, Greene & Associates products join our company going forward," Stephen Adams, who represented the seller in chairman of Adams Publishing Group, said in a statement. the transaction.Northern "The Brady family has a long history of providing strong Wyoming Daily News journalism in the state of Idaho. It's our goal to continue their tradition of locally focused, community-driven editorial writing and reporting." The group made the decision to focus on their I-80 corridor Cribb, Greene & Cope represent the buyer newspapers, according to President of Cheyenne Newspapers, Inc.