Official: Astral Buys Standard Radio
April 12, 2007 at 7:01 AM (PT)
ASTRAL MEDIA makes it official and announces a definitive agreement to buy STANDARD RADIO for C$1.08 billion (C$880 million cash and the rest in ASTRAL Class A non-voting shares). ASTRAL adds 52 stations across CANADA in the deal, plus INTEGRATED MEDIA SALES, SOUND SOURCE NETWORKS, STANDARD INTERACTIVE, and CBC affiliates CFTK-TV/TERRACE, BC and CJDC-TV/DAWSON CREEK, BC. The companies had earlier announced that ASTRAL had entered into exclusive negotiations to buy STANDARD. STANDARD's GARY SLAIGHT will become a director of ASTRAL after the deal closes.
"This is an important acquisition for Astral Media that will bring much value to our shareholders," said ASTRAL Pres./CEO IAN GREENBERG. "The acquisition of STANDARD RADIO from the SLAIGHT family means that ASTRAL MEDIA will become the largest radio broadcaster in CANADA. It is an acquisition that will be immediately accretive to earnings, while allowing ASTRAL MEDIA to maintain its financial discipline and prudent capital structure. Not only is the strategic fit very sound -- adding English-language media properties in geographic areas across CANADA where we are not currently present, ASTRAL MEDIA and STANDARD RADIO also have highly compatible corporate cultures. We are also very pleased to be welcoming STANDARD's more than 1,000 talented employees and experienced management team; our combined radio properties will offer listeners and advertisers alike, a diverse choice of quality brands across the entire breadth of the country."
"ASTRAL MEDIA's acquisition of STANDARD RADIO is an exciting turning point in the history of our company," added SLAIGHT. "I feel a sense of pride today to be able to announce that we have finalized this deal which will see the company that ALLAN SLAIGHT bought in 1985 and that we have built in to the leading private radio group in CANADA joins forces with a stellar company like ASTRAL MEDIA. I am confident that the cultural fit between our two companies will produce a powerhouse in
Astral Q2 Revenues Up
STANDARD also announced second fiscal quarter results that showed revenues up 8% year-to-year to C$149.9 million, EBITDA up 8% to C$41.4 million and net earinings up 9% to C$24.6 million (up 12% to C47 cents/share). Radio revenues were up slightly from C$25.465 million to C$25.707 million.