Beasley Buys Greater Media
July 19, 2016 at 2:56 PM (PT)
BEASLEY BROADCAST GROUP has announced that it is buying GREATER MEDIA, INC. The deal will add 21 stations in seven markets to BEASLEY's portfolio.
BEASLEY will be paying about $240 million for GREATER MEDIA, buying all of the latter's outstanding stock, with GREATER MEDIA shareholders expected to receive approximately $100 million in cash and approximately $25 million in shares of BEASLEY’s Class A common stock (at a fixed value of $4.61 per share). GREATER MEDIA will also spin off and sell its tower assets, valued at approximately $20 million, and will distribute that amount to its shareholders. The deal has been approved by both boards and is expected to close in fourth quarter, after which BEASLEY shareholders will hold about 81% and GREATER MEDIA shareholders about 19% of BEASLEY, and GREATER MEDIA shareholders will have the right to name one member to the BEASLEY board, which will expand to nine members.
BEASLEY plans to refinance about $80 million of GREATER MEDIA debt and borrow funds under a new credit facility to finance the deal, plus cash and issuance of Class A common stock. RBC CAPITAL MARKETS and U.S. BANK have provided committed financing for the transaction. BEASLEY will have 73 stations (52 FM and 21 AM) in 16 markets after the deal, but will also divest stations in CHARLOTTE, where both companies own stations, to enable the deal.
BEASLEY Interim CEO/CFO CAROLINE BEASLEY said, “The acquisition of GREATER MEDIA’s broadcasting and related digital assets represents a transformational growth opportunity for BEASLEY and is strategically and financially compelling for our shareholders. The transaction increases our broadcast portfolio by approximately 40% and more than doubles our audience reach, giving us both market leading stations and great brands.
“Throughout BEASLEY BROADCAST GROUP’s 55-year history, we have actively managed our station portfolio with the goal of providing our local communities with great entertainment and critical information, diversifying our operations, managing risk and improving financial results. Similarly, GREATER MEDIA and the BORDES family have a 60-year track record of serving local communities and developing new technology and services to improve media communications. A focus on strong core programming and targeted localism has been the foundation of both companies’ operating philosophies, ratings strength and market leadership. As such, we intend to implement our proven strategy of focusing on local programming and effective digital media marketing solutions across the two companies as well as best practices from our existing operations with those from GREATER MEDIA.”
GREATER MEDIA Chairman and CEO PETER H. SMYTH added, “We share with BEASLEY a common appreciation for the enduring strength of local radio broadcasting and we are delighted that our stations will become part of BEASLEY’s expanded footprint. As part of the BEASLEY portfolio, we believe our stations will be positioned extremely well for future growth and that our team members, customers and the communities we serve will continue to thrive.
“Our employees have provided the skills and talent necessary to drive our ongoing growth and success over the years and we are proud of this heritage. I am thankful for their hard work and dedication and am confident they will continue to make many valuable contributions as part of a larger organization. I look forward to working with the BEASLEY team to bring our companies together to realize the power of this compelling combination and ensure a smooth transition.”