Gannett sells business media, marketing subsidiary
McLean-based newspaper publisher sells BridgeTower Media to Transom Capital Group
McLean-based Gannett Co. Inc., the nation’s largest newspaper publisher, sold its business media and B2B marketing subsidiary, BridgeTower Media, to Los Angeles-based middle-market private equity firm Transom Capital Group, the company announced last week.
Financial terms of the sale were not disclosed.
Through more than 40 digital and print brands, BridgeTower Media provides media and marketing content about the legal, business, construction, legislative, pet retail and home furnishing sectors. The owner of USA Today, Gannett has a portfolio of 261 local daily newspapers in 46 states and Guam, including the Arizona Republic, the Des Moines Register and the Burlington Free Press. Transom has more than $600 million in assets under management.
“BridgeTower Media has been an integral partner to businesses across the country, providing valuable media and marketing services for a long time,” Transom Partner James Oh said in a statement. “The company has a strong leadership team and has invested in its brands to be a market leader today. Our plan is to continue on the success the team has achieved and invest in technology and resources to stay ahead of the dynamic market.”
Transom used Kirkland & Ellis as corporate legal adviser and Perkins Coie LLP as the financing legal adviser. Cerberus Business Finance provided financing for the transaction. JEGI LLC was a financial adviser to Gannett.
Gannett announced in early April that it was negotiating with its vendors, creditors and pension regulators in order to preserve the company’s liquidity. It was noticeably not on the Fortune 1000 list released in mid-May. The company also announced mass layoffs, furlough and pay cuts in late March due to the COVID-19 pandemic.
“We’re excited to partner with Transom to expand our business and strengthen our commitment to the markets we serve,” BridgeTower Media CEO Adam Reinebach said in a statement. “The culmination of this deal is a tribute to the resiliency, dedication and creativity of our people, whose collective grit is unmatched. We’re thrilled to find an investment partner who shares our vision for the future.”