WASHINGTON–(BUSINESS WIRE)–Radio One, Inc. (NASDAQ: ROIAK and ROIA) today announced that it has entered into an Asset Purchase Agreement to sell all of its radio stations in Dayton, Ohio and five of its six radio stations in Louisville, Kentucky, to Main Line Broadcasting, a portfolio company of Arlington Capital Partners, a Washington, DC-based private equity fund. The transaction price is approximately $76.0 million which represents a purchase price multiple of approximately 12x based on 2006 station operating income for the stations being sold. The transaction is expected to close during the second half of 2007.
Alfred C. Liggins, III, Radio One’s CEO and President stated, “This attractive transaction represents a continuation of our stated plans to sell radio stations in markets that are not necessarily core to our strategy, at prices above the current public trading multiples for most radio companies. Louisville and Dayton are actually the smallest of all of our markets in terms of the actual population of African-Americans. Additionally, there are several non-urban stations among the 10 stations being sold in this transaction. We expect to use the proceeds from this transaction to reduce our leverage and further strengthen the Company’s balance sheet.†(more…)
Sphere: Related Content
