David Hoffmann, founder and chairman of the Hoffmann Family of Companies, is anchoring a $50 million investment in Lee Enterprises and will become chairman of the media company, which owns The Times of Northwest Indiana.
The deal, announced Tuesday, also offers debt relief for Lee Enterprises, which owns print and online publications in 72 markets across the country.
As part of the agreement, Lee CEO Kevin Mowbray is retiring. Chief Operating Officer Nathan Bekke will take over as interim CEO as the company embarks on a search for a new permanent CEO.
Also as part of the plan, Lee's primary lender, Berkshire Hathaway Finance, has agreed to cut the interest rate on the newspaper chain's roughly $450 million in debt from 9% to 5% for five years, saving as much as $18 million a year in interest payments.
“This transaction reflects the Board’s determination to act decisively," Mary Junck, current chair of Lee's Board of Directors, said in a company statement. “By strengthening the balance sheet and improving the company’s capital structure, we are putting the company in a better position to execute and create long-term value.”
Lee Enterprises, based in Davenport, Iowa, reported in a Securities and Exchange Commission filing that it will sell Hoffmann and other investors nearly 15.4 million shares in the company at $3.25 per share. Hoffmann, as the lead investor, is set to be made chairman of the board, according to the SEC filing.
Hoffmann has committed to buying up to $35 million in shares, while other investors committed to up to $15 million. Lee said it will hold a shareholder meeting as soon as practicable to obtain approval for the deal and increase the number of shares it can issue.
The deal is expected to close in the first quarter of 2026.
Hoffmann has been expressing interest in Lee for more than a year while growing his stake in the company to around 10%.
“This transaction strengthens the Company’s balance sheet and reflects the Board’s determination to take decisive action,” Hoffman said in the company’s announcement of the agreement. “With improved financial stability and a clear governance framework in place, the focus can now be on disciplined execution and long-term value creation.”
The Hoffmann Family of Companies includes more than 200 brands across a variety of industries. It employs more than 17,000 people worldwide.
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