Pulitzer (NYSE:PTZ)
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Newspaper publisher Lee Enterprises, Incorporated
(NYSE:LEE), announced today that it has completed its acquisition of
Pulitzer Inc. (NYSE:PTZ) in a transaction valued at about $1.46
billion.
Plans for the acquisition were announced Jan. 30.
The transaction expands Lee by 14 daily newspapers, including the
St. Louis Post-Dispatch, and more than 100 non-daily publications.
Lee becomes the fourth largest U.S. newspaper publisher in terms
of dailies owned and seventh largest in circulation, growing from 44
to 58 daily newspapers in 23 states, with new total circulation of 1.7
million daily and 2.0 million Sunday. Lee also grows to more than 300
weekly newspapers, shoppers and specialty publications. On the basis
of calendar 2004 results, Lee's revenue will rise by more than $440
million, to $1.14 billion.
The closing followed a vote of Pulitzer Inc. stockholders
approving the transaction, in which Pulitzer Inc. became an indirect,
wholly owned subsidiary of Lee. Pulitzer Inc. stockholders will
receive $64 in cash for each share of Common Stock or Class B Common
Stock.
Mary Junck, Lee chairman and chief executive officer, said: "This
is a terrific acquisition that extends Lee into more growth markets
with quality newspapers staffed by talented people. We're excited
about our new opportunities and we're already on our way toward a
smooth, quick transition, thanks to great help from Pulitzer
publishers and executives, particularly Bob Woodworth," referring to
Robert C. Woodworth, president and chief executive officer of
Pulitzer.
She described the acquisition as a continuation of Lee's long-term
strategies, noting that it is similar in order of magnitude to Lee's
acquisition of Howard Publications Inc. and its 16 newspapers in 2002.
At that time, Lee grew by about 50 percent in revenue and 75 percent
in circulation. The Pulitzer acquisition will increase Lee's size by
about 60 percent in revenue and 50 percent in circulation. In the
combined company, Pulitzer will represent about 39 percent of the
revenue and 34 percent of the daily circulation.
Junck said Lee will apply its five top operating priorities at the
new newspapers, focusing on revenue growth, readership and
circulation, strong local news, online strength and careful cost
controls.
Pulitzer daily newspapers, in addition to the St. Louis
Post-Dispatch, are the Arizona Daily Star in Tucson, Ariz.; The
Pantagraph, Bloomington, Ill.; The Daily Herald, Provo, Utah; the
Santa Maria Times, Santa Maria, Calif.; The Napa Valley Register,
Napa, Calif.; The World, Coos Bay, Ore.; The Sentinel, Hanford,
Calif.; the Arizona Daily Sun, Flagstaff, Ariz.; the Daily Chronicle,
DeKalb, Ill.; The Garden Island, Lihue, Hawaii; the Daily Journal,
Park Hills, Mo.; The Lompoc Record, Lompoc, Calif.; and The Daily
News, Rhinelander, Wis.
Pulitzer's 100-plus non-daily publications include the Suburban
Journals of Greater St. Louis, a group of 38 weekly newspapers and
niche publications with distribution of more than one million copies a
week. Pulitzer operations also include leading online sites in all of
its markets, including STLtoday.com in St. Louis and azstarnet.com in
Tucson.
With the addition of about 4,000 people from Pulitzer, Lee's
roster of employees rises to 10,700.
Among other aspects of the acquisition, Lee gains a small minority
stake in the St. Louis Cardinals major league baseball team.
Lee is based in Davenport, Iowa, and its stock is traded on the
New York Stock Exchange under the symbol LEE. More information about
Lee Enterprises is available at www.lee.net.
The Private Securities Litigation Reform Act of 1995 provides a
"Safe Harbor" for forward-looking statements. This release contains
information that may be deemed forward-looking and that is based
largely on the Company's current expectations and is subject to
certain risks, trends and uncertainties that could cause actual
results to differ materially from those anticipated. Among such risks,
trends and other uncertainties are changes in advertising demand,
newsprint prices, interest rates, labor costs, legislative and
regulatory rulings and other results of operations or financial
conditions, difficulties in integration of acquired businesses or
maintaining employee and customer relationships and increased capital
and other costs. The words "may," "will," "would," "could,"
"believes," "expects," "anticipates," "intends," "plans," "projects,"
"considers" and similar expressions generally identify forward-looking
statements. Readers are cautioned not to place undue reliance on such
forward-looking statements, which are made as of the date of this
release. The Company does not publicly undertake to update or revise
its forward-looking statements.