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Lee Enterprises To Acquire BH Media Group's Publications - Quick Facts

Lee Enterprises, Incorporated (LEE) has reached an agreement with Berkshire Hathaway (BRK-B,BRK-A, BRKa) to acquire BH Media Group's publications and The Buffalo News for $140 million. BHMG owns the print and digital operations of 30 daily newspapers, as well as more than 49 paid weekly publications with digital sites and 32 other print products.

Berkshire Hathaway is providing approximately $576 million in long-term financing to Lee at a 9% annual rate. The proceeds will be used to pay for the acquisition, refinance Lee's approximately $400 million of existing debt, and provide enough cash on balance sheet to allow for the termination of revolving credit facility.

Lee anticipates the acquisition to be immediately accretive to earnings. Annual run-rate revenue and cost synergies are estimated at $20-25 million.

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