Deal closes for Blethen Maine Newspapers
The sale of Blethen Maine Newspapers, the owner of the Portland Press Herald, was completed today, a little more than one year after the deal was announced.
MaineToday Media Inc., an investment group led by Bangor-native Richard Connor, purchased Maine's largest media company for an undisclosed amount from The Seattle Times Co., marking only the second time since the company was formed in the 1920s that it has changed hands, according to the Portland Press Herald. The company includes the Portland Press Herald/Maine Sunday Telegram, the Kennebec Journal in Augusta, the Morning Sentinel in Waterville, a few weeklies and an online division. Together the company employs roughly 500 people.
Connor, who will serve as editor and publisher of all three daily newspapers included in the sale, teamed up with Texas-based HM Capital Partners to buy Blethen. The Portland branch of Citizens Bank financed the deal.
Connor said no significant changes are expected at the newspapers right away, though last week 31 non-union employees were told they would not be retained by the new company, according to the Press Herald. Those losing their jobs include Robert Bickler, CEO of the Portland Press Herald; Jeannine Guttman, editor and vice president of the Portland Press Herald/Maine Sunday Telegram; John Christie, publisher of the Kennebec Journal in Augusta and Morning Sentinel in Waterville; and Eric Conrad, executive editor of the Kennebec Journal and Morning Sentinel, the paper reported. Connor, editor and publisher of The Times Leader in Wilkes-Barre, Pa., said 100 more jobs may be cut in the future, the paper reported.
The unions at Blethen had voted over the last few weeks to concessions that Connor said were necessary to complete the sale. The Portland Newspaper Guild, the largest union at the company with around 300 members, voted on May 29 to accept concessions, including a 10% pay cut, a two-year wage freeze and a suspension of both 401(k) and pension contributions. In return, the union members will receive 15% ownership in the new company and two seats on the board of directors.
At the time of the May 29 vorte, Tom Bell, president of the Portland Newspaper Guild, called Connor "a great newspaper man." "Rich Connor is an entrepreneur," Bell said. "That's why he's perfect for this business right now."
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