Lee Enterprises, which owns the Lincoln Journal Star, announced Monday that it has completed its purchase of BH Newspapers, owner of the Omaha World-Herald.
“We are pleased to complete this compelling and transformative transaction, which enhances Lee’s position strategically, operationally and financially," Lee Chairman Mary Junck said in a news release. "This transaction reinforces our conviction in the value and power of local news, adding 31 publications with deep roots in their communities, enabling Lee to serve even more readers and advertisers."
Lee had announced the deal in late January to buy the newspapers from the Warren Buffett-owned company for $140 million.
As part of the deal, BH Newspaper's parent company, Omaha-based Berkshire Hathaway — will provide $576 million in long-term financing to Lee at a 9% annual rate. That covers the purchase price and $400 million of existing Lee debt, which has rates of anywhere from 9.5%-12%, according to company filings. Lee said it would save $5 million annually on financing costs.
People are also reading…
Lee already had been managing the newspapers as part of a deal with Berkshire Hathaway.
In addition to the World-Herald, the purchase also includes the Grand Island Independent, Kearney Hub, North Platte Telegraph, Scottsbluff Star-Herald and York News-Times and various weekly publications in Nebraska.
Nationwide, Lee will add newspapers including the Buffalo News, Tulsa World and Richmond Times-Dispatch.