Halyard Capital Sells American Consolidated Media for $80 Million to Macquarie Media Group

Jan 24, 2007, 00:00 ET from Halyard Capital

    NEW YORK, Jan. 24 /PRNewswire/ -- Halyard Capital today announced that
 its portfolio company, American Consolidated Media, has entered into an
 agreement with Macquarie Media Group (MMG) to be acquired for $80 million.
 The acquisition is subject to regulatory approval and other customary
 closing conditions. Other financial terms of the transaction were not
     American Consolidated Media (ACM), which is based in Dallas, was formed
 in 1998 by Jeremy L. Halbreich, formerly president and general manager of
 The Dallas Morning News. The company publishes 40 community newspapers and
 shopping publications serving nine communities throughout Texas and
     In July 2004, Halyard made its investment in ACM to facilitate the
 acquisition of Valley Media, a publisher of shopper and community newspaper
 publications with a significant Hispanic audience in the Lower Rio Grande
 Valley, one of the fastest growing regions in the U.S.
     "Halyard was attracted to ACM community papers' strong franchise values
 in high-growth communities where there are few local media competitors. In
 locations where there are competitive publications, ACM generally owns the
 dominant paper," said Christopher Ruth, a partner at Halyard Capital. "Most
 of its publications are mature brands with a strong, loyal readership and
 long relationships with local advertisers. In addition, ACM's publications
 are geographically clustered, providing operating leverage and cost
 synergies in the areas of distribution, printing, newsprint and
 administration. All these factors increased ACM's attractiveness as a media
     "We are delighted to have partnered with Jeremy and his team in our
 firm's fourth successful investment in the newspaper industry. Jeremy and
 his team have demonstrated exceptional execution capabilities and will
 continue to drive the growth in the business with MMG through their focus
 on targeted community content," Ruth added.
     "Halyard Capital has demonstrated throughout our relationship a deep
 understanding and extremely valuable commitment to our business, our
 operating strategy and our people," said Halbreich. "Along with fellow
 investors Arena Capital Partners and BancBoston Ventures, they have served
 as true partners in facilitating and supporting the growth and development
 of ACM," he added.
     Other Halyard investments in the sector have included ImpreMedia,
 Herald Media, and American Community Newspapers. Dirks, Van Essen & Murray
 acted as the company's financial advisor and Paul, Weiss, Rifkind, Wharton
 & Garrison LLP as well as Akin Gump Strauss Hauer & Feld LLP served as
 legal advisors to the company.
     About Halyard Capital
     Halyard is a private equity fund with $350 million of capital under
 management focused on investing in media, communications and business
 services companies. The firm specializes in middle-market leveraged
 buyouts, growth equity and structured equity investments. Halyard invests
 in and works closely with exceptional management teams in companies with
 defensible market positions and franchise characteristics, which generate
 strong cash flow and operate in attractive growth markets. The firm will
 commit up to $40 million to individual portfolio companies with a focus on
 investments of between $15 million and $30 million. Halyard has the ability
 to complete larger transactions utilizing our network of investment
 partners. For more information, please visit http://www.halyard.com.
     About Macquarie Media Group
     Macquarie Media Group (MMG) is an investment fund established to create
 a flexible platform for investments in a broad range of media assets
 globally, and is listed on the Australian Stock Exchange (ASX: MMGCA). MMG
 seeks to combine operational expertise from quality media operators with
 Macquarie's financing and acquisition expertise, to access investments
 across the media sector globally, and provide investors with stable cash
 yields, the benefits of organic growth through market growth and asset
 performance improvement, as well as growth through acquisition.

SOURCE Halyard Capital