Toronto-based Postmedia has announced it will purchase all of the daily and weekly newspapers owned by New Brunswick's Irving family
Postmedia says in a news release it has reached an agreement to buy all outstanding shares of Brunswick News Inc., which is part of J. D. Irving Ltd.
Brunswick’s stable of daily newspapers in New Brunswick includes the Telegraph-Journal in Saint John, the Times and Transcript in Moncton and The Daily Gleaner in Fredericton.
The proposed deal includes acquisition of Brunswick’s digital properties and parcel delivery business.
Postmedia has offered J. D. Irving $7.5 million in cash and $8.6 million in shares of Postmedia at an implied price of $2.10 per variable voting share.
The transaction is subject to various closing conditions, including approval by the Toronto Stock Exchange.
Brunswick News also owns the Miramichi Leader, Woodstock Bugle-Observer, Bathurst Northern Light, Kings County Record, Campbellton Tribune and The Victoria Star, which covers the Grand Falls area of eastern New Brunswick.
The purchase signals J.D. Irving’s exit from the media business, Jim Irving, co-CEO of J.D. Irving Ltd., said in a statement.
“Postmedia is well positioned to make the transition to the digital world of providing New Brunswickers with a reliable source of local, regional and national news as well as access to much broader news coverage,” Irving said in a statement.
Andrew MacLeod, president and CEO of Postmedia, said the pending acquisition will give the company a reach from coast to coast.
“The addition of BNI brands allows Postmedia to serve audiences and marketers from the Pacific to the Atlantic while we continue to build out a national distribution platform and network for our parcel delivery business,” MacLeod said in a statement.
Postmedia Network Canada Corp. already owns 120 brands across multiple print, online and mobile platforms.