Hubbard Radio Announces $85.5 Million Deal To Purchase 10 Sandusky Stations
July 16, 2013
Hubbard Radio, LLC announced today that it has entered into an asset purchase agreement to acquire 10 radio stations from Sandusky Radio: five stations in Seattle and five in Phoenix.
"This is an exciting opportunity to expand Hubbard Radio into two top 20 markets," said Virginia (Ginny) Morris, board chair of Hubbard Radio. "We have known and respected the Rau/White family, Sanduskyís owners, for many years. We admire what they have accomplished and we are honored that they would agree to sell us these established stations. We are committed to maintaining the dedication to excellence and to community that Sandusky has made such an important part of their radio operations."
The five Seattle stations involved in the transaction are: Standards KIXI-AM 880; Rhythmic CHR 92.5 KQMV-FM; News/Talk 1150 KKNW-AM; AC 106.9 KRWM-FM; and Hot AC 98.9 KLCK-FM. The five Phoenix stations are: Classic Rock 100.7 KSLX-FM; Active Rock 97.9 KUPD-FM; Rock 93.3 KDKB-FM; Oldies 1440 KAZG-AM; and Sports 1060 KDUS-AM.
Hubbard Radio President/CEO Bruce Reese stated, "Hubbard is excited about the chance to add these great stations to our existing operations in Chicago, Washington, DC, Minneapolis/St. Paul, St. Louis and Cincinnati. Sandusky runs very successful radio stations, and we plan on continuing that precedent. We look forward to working with our new colleagues."
Through the acquisition, Hubbard Radio will add 65 to 70 full time employees in each of the two markets. Reese said he expects no programming or personnel changes for any of the acquired stations. Hubbard Radio currently employs approximately 600 full-time employees.
Norman D. Rau, President of Sandusky Radio, commented, "Hubbard Radio, a private family-owned business, holds very similar values as our business. Hubbard has nine family members directly involved in the Hubbard companies. We believe the future of our listeners, employees and our customers could not be in better hands. As a significantly larger broadcasting company, Hubbard can give the Sandusky stations a potential for growth and scale that Sandusky on its own just could not give them."
The sale will end Sanduskyís 36-year history as a radio broadcaster and allow it to concentrate on the continuing digital transformation of its local print and online newspaper and marketing franchises.
Morgan Stanley is acting as financial advisors to Hubbard Radio in connection with the transaction and has issued commitments to provide debt financing for the acquisition. Under the terms of the asset purchase agreement, Hubbard Radio will acquire the radio stations for approximately $85.5 million. Other terms of the transaction were not disclosed. The sale is expected to be finalized upon FCC approval and other customary closing conditions.