MONTREAL and TORONTO – The Slaight family sold its company, Standard Radio, to Astral Media today for $1.08 billion.
The combined company will be the largest radio broadcaster in Canada and, says Astral, "achieves No.1 radio market position by number of stations and by weekly hours tuned.
The purchase makes Astral a national radio player, adding brands such as EZ Rock, Mix, The Bear and the CFRB newstalk format to Astral’s popular Quebec brand Radio Energie.
Astral did not purchase the Slaight’s interest in satellite radio company Sirius Canada nor Standard Interactive, which runs assets such as multichannel Internet streaming service Iceberg Radio.
In a conference call with financial analysts this morning, Astral CEO Ian Greenberg reminded attendees of its failed radiolibre.ca effort, adding, "We learned some good lessons from that experience and we don’t think radio streaming is in our future plans."
Of the purchase price for Standard, $880 million will be paid in cash and the balance via the issuance of 4.75 million Class A non-voting shares of Astral Media valued at approximately $200 million at the current share price. The cash portion of the consideration will be financed with cash balances on hand at the time of closing and through committed bank credit facilities.
The transaction is subject to customary conditions, including a review by the Competition Bureau and the approval of the CRTC. Closing is currently expected around the beginning of the 2008 calendar year. Following the closing of the acquisition, Gary Slaight will join Astral Media’s Board of Directors.
"This is an important acquisition for Astral Media that will bring much value to our shareholders," said Ian Greenberg, president and CEO of Astral, in the press release. "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," added Greenberg.
"Astral Media’s acquisition of Standard Radio is an exciting turning point in the history of our company," said Gary Slaight, president and CEO of Standard, in the same statement. "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 Canadian broadcasting."
The assets to be purchased include Standard Radio’s 52 radio stations, which operate in five provinces covering 29 markets across Canada, Integrated Media Sales or "IMS" a national advertising sales company; Sound Source Networks, a leading radio content service provider offering a comprehensive range of targeted programming; some interactive assets and two conventional television stations (CBC affiliates) located in northern British Columbia, which Greenberg said this morning there are no current plans to sell.
Stations acquired are:
CHOM FM (97.7 FM) – Montréal
Z95.3 FM (95.3 FM) – Vancouver
MIX 96 (95.9 FM) – Montréal
CISL (650 AM) – Vancouver
CJAD (800 AM) – Montréal
SILK FM (101.5 FM) – Kelowna
SUN FM (99.9 FM) – Kelowna
EZ ROCK (97.3 FM) – Toronto
Oldies 1150 (1150 FM) – Kelowna
MIX 99.9 (99.9 FM) – Toronto
SUN FM(105.7 FM) – Vernon
CFRB (1010 AM) – Toronto
Oldies 1450 (1450 FM) – Summerland
THE BEAR (106.9 FM) – Ottawa
SUN FM (97.1 FM) – Penticton
K-LITE (102.9 FM) – Hamilton
EZ ROCK (800 AM) – Penticton
CKOC (1150 AM) – Hamilton
EZ ROCK (1400 AM) – Princeton
THE LEGEND (820 AM) – Hamilton
EZ ROCK (1240 AM) – Osoyoos/Oliver
EZ ROCK (97.5 FM) – London
EZ ROCK (91.5 FM) – Salmon Arm
BX 93 (92.7 FM) – London
EZ ROCK (1340 AM) – Revelstoke
CJBK (1290 AM) – London
EZ ROCK (1400 AM) – Golden &
CKSL (1410 AM) – London
EZ ROCK (105.7 FM) – St. Catharines
All Hits KBS (95.7 FM) – Trail & Invermere
HTZ FM (97.7 FM) – St. Catharines
CKTB (610 AM) – St. Catharines
All Hits KBS (106.9 FM) – Nelson & Kootenays
STAR 96 (96.7 FM) – Pembroke
CJDC (890 AM) – Peace Region
Hot 103 (103.1 FM) – Winnipeg
ENERGY FM (102.3 FM) – Fort Nelson
QX 104 (104.1 FM) – Winnipeg
THE BEAR (101.5 FM) – Fort St. John
KX 96 (96.1 FM) – Brandon
ENERGY FM (98.5 FM) – Fort St. John
THE FARM (101.1 FM) – Brandon
CJFW FM (103.1 FM) – Terrace
THE MIX (590 AM) – Terrace
CJAY 92 (92.1 FM) – Calgary
THE MIX (97.7 FM) – Kitimat
VIBE 98.5 (98.5 FM) – Calgary
THE MIX (560 AM) – Prince Rupert
CKMX (1060 AM) – Calgary
EZ ROCK (104.9 FM) – St. Albert
THE BEAR (100.3 FM) – Edmonton
THE TEAM (1260 AM) – Edmonton
TV Stations:
CFTK-TV – Terrace
CJDC-TV – Dawson Creek
