Beasley Broadcast Group to Acquire WDMK Detroit for $13.5M
|RADIO ONLINE | Tuesday, June 11, 2019|
Beasley Broadcast Group has agreed to acquire 20kW Urban WDMK-FM (105.9 Kiss FM) and three translators in Detroit from Urban One for $13.5 million in cash. Beasley also owns Classic Rock WCSX, Rhythmic AC WMGC and Active Rock WRIF there. Beasley intends to fund the acquisition through borrowings under its credit facility and cash generated from operations. The transaction is expected to close during fourth quarter of 2019.
Commenting on the proposed transaction, CEO Caroline Beasley said, "The accretive acquisition of WDMK-FM significantly enhances our revenue and competitive position in Detroit. Detroit is undergoing an exciting renaissance as a result of billions of dollars of new investments in the city's residential, commercial, entertainment and cultural centers, all of which are driving new residents, businesses, tourists, employment and economic activity."
"We entered the Detroit market in late 2016 and have consistently improved the operating results of the three stations we acquired, and we believe the proposed transaction is a strategically and financially compelling growth opportunity for our shareholders. The addition of WDMK-FM will mark further progress toward our goal of capturing 30 percent revenue share in each of our markets while delivering valuable synergies and the potential for SOI margin improvement."
"Consistent with Beasley's disciplined approach to growing our platform, the acquisition of WDMK-FM is expected to be immediately accretive to free cash flow, excluding one-time transaction costs, and with our strong balance sheet, we will continue to have the financial flexibility to make additional return-focused growth investments, while further reducing leverage and returning capital to shareholders."
"We look forward to realizing the strategic benefits of the WDMK-FM transaction in 2020 as we continue to advance our initiatives focused on leveraging our premium local programming and brands, while aggressively rolling out our digital offerings and distribution capabilities to reinforce and grow Beasley's leadership position across all audio platforms in our markets. This approach will enable us to deliver great local content to listeners while creating an even stronger marketing platform for local businesses."
Michael J. Bergner of Bergner & Co. brokered this transaction.