Investing.com -- Atlanta-based GTN announced on Monday that it has reached an agreement to acquire all of the television and radio holdings of Schurz Communications, Inc. for $442.5 million, including all working capital.
Prior to the announcement, Gray Television owned and operated 77 television stations in 44 markets, including 76 affiliates of the Big Four networks from ABC, NBC, CBS and Fox. In 28 of the 44 markets, Gray owns the top-ranked network along with 41 of the 44 number-one or number-two stations in the broadcast area. In total, broadcasts from the network reach a total of 8.1% television households nationwide.
In 2014, Gray television earned record annual revenues of $508 million, exceeding $500 million for the first time in company history.
"Today is a momentous day in Gray's 118-year history," Gray's CEO Hilton H. Howell, Jr. said in a statement. "Through the Schurz transaction, we will significantly expand the quality of our portfolio of leading television stations. We welcome more dedicated reporters, account executives, and technologists to our growing family. Quite simply, Gray's existing stations will make the Schurz stations stronger, while the Schurz stations will make our existing stations better."
Schurz Communications, which is based in South Bend, Indiana, owns television stations in nearly a dozen markets, including Anchorage, Alaska, Augusta, Ga., Wichita, Kan. and Roanoke, Va.
"In a rapidly consolidating industry where size and scale matter more than ever before, we have come to the realization that Gray Television would be the best steward to ensure our stations succeed over the long-term," Schurz CEO Todd Schurz said in a statement. "Gray knows how to operate top stations in small and medium-sized markets, and they have an entrepreneurial and decentralized culture.
"Moreover, Gray shares our commitment to local communities, staffs, journalistic ideals, and the broadcasting industry. Being part of a larger company with these important credentials will create more opportunities for employees and the communities that we all love."
Shares in Gray Television surged 1.26 or 10.73% to 11.74 in after-hours trading.