Indianapolis-based Emmis Communications Corp. (Nasdaq: EMMS) has signed an agreement to sell its Texas Monthly magazine to an affiliate of Houston-based private equity firm Genesis Park LP. The $25 million deal is expected to close in early November.
Paul Hobby, founding partner of Genesis Park says the group plans to bring "new ideas, strategic relationships and thoughtful investment" to the publication.
"Texas Monthly has been a member of the Emmis family for 18 years, so today is bittersweet," said Jeff Smulyan, chief executive officer of Emmis. "We want to thank all of our employees for their dedication and hard work. This transaction allows us not only to de-lever our balance sheet, but puts TM in the capable hands of one of Texas’ great families, the Hobbys."
The announcement comes as Smulyan is in the midst of an attempt to purchase the Emmis’ outstanding publicly-held shares and take the company private. When the move was originally announced in August, the company announced it was "exploring strategic alternatives for its publishing division," except for Indianapolis Monthly magazine.
The company said it was also looking for alternatives for its Terre Haute radio stations, which were recently sold.