Hubbard Broadcasting, Inc. Announces Agreement to Purchase Seventeen Radio Stations from Bonneville International Corporation
Acquisition Expands Company's Footprint into Four Key Regional Markets
MINNEAPOLIS-ST. PAUL, January 19, 2011Hubbard Broadcasting, Inc. announced today that the company has entered into an asset purchase agreement to acquire seventeen radio stations from Bonneville International Corporation. The acquisition strengthens Hubbard Radio's national reach, with the addition of the stations in four strategic markets, including Washington, D.C., Chicago, St. Louis and Cincinnati. The company expects no programming or personnel changes for any of the acquired radio stations subsequent to the transaction.
"This is an exciting opportunity for Hubbard Broadcasting," said Virginia (Ginny) Morris, who will become Chair of newly created Hubbard Radio, LLC upon closing. "We have long admired the good work, reputation and leadership of Bonneville International and its management team and feel honored to welcome these great stations into the Hubbard family of companies. With the proliferation of media in this internet age, local and free over the air radio remains a mainstay in the lives of virtually all Americans. This combination of radio assets and brands represents the best of the best in the industry. Hubbard Radio will continue to maintain the investment and commitment to excellence and community service that have built and sustained these brands".
As a result of the acquisition, Hubbard Radio will add 547 employees, bringing its total full and part-time employees to 701. As part of the acquisition, Bruce Reese, President and Chief Executive Officer of Bonneville International, will assume that same role for Hubbard Radio, LLC. Reese has been with Bonneville for nearly 27 years and was appointed to his current position in 1996. Prior to joining Bonneville, Mr. Reese practiced law with firms in Washington, D.C., and Denver. He began his legal career with the Antitrust Division of the Justice Department in Washington, D.C. In addition, Drew Horowitz, COO of Bonneville International, will also join the Hubbard team. Horowitz is a 35 year veteran of radio management, holding senior level positions in sales and station management. He was recently named the number one radio executive by Radio Ink magazine.
"Bonneville has built all its media properties into profitable, well-managed media outlets in lucrative markets, which has made them attractive to many potential buyers through the years," said Mark Willes, President and CEO of Deseret Management Corporation, Bonneville International's parent company. "Hubbard Broadcasting, Inc. is a well-respected business that represents many of the same values Bonneville embraces, which we took into consideration when the company approached us. We felt Hubbard's long term hold strategy was the right fit for these stations."
Morgan Stanley & Co. Incorporated and Methuselah Advisors, LLC acted as financial advisors to Hubbard Radio in connection with the transaction. Morgan Stanley Senior Funding, Inc. and Goldman Sachs Bank USA have issued commitments to provide debt financing for the acquisition. Under the terms of the asset purchase agreement, Hubbard Broadcasting will acquire the radio stations for approximately $505 million. Other terms of the transaction were not disclosed. The sale is expected to be finalized upon FCC approval and other customary closing conditions.
About Bonneville International Founded in 1964, Bonneville International (www.bonneville.com) owns and operates 31 radio stations in the Los Angeles, Chicago, Washington, D.C., Seattle, Phoenix, St. Louis, Cincinnati, and Salt Lake City markets, as well as KSL-Television (NBC affiliate) in Salt Lake City. Bonneville's motto is "Do good, do well, make a difference, and have fun." In addition to competing aggressively in major-market broadcasting by structuring its business model on the three principles of building its people, making a difference in the community, and meeting aggressive financial goals, Bonneville has a tradition of award-winning commitment to the communities it serves. Headquartered in Salt Lake City, Bonneville is a national leader in providing quality, values-oriented media products.
About Hubbard Broadcasting, Inc. Started in 1923, Hubbard Broadcasting, Inc. is an American television and radio broadcasting corporation based in Minneapolis-St. Paul, Minnesota that was started by Stanley E. Hubbard. Hubbard Broadcasting now operates four radio stations as well as twelve television stations in Minnesota, New York and New Mexico.
In addition to radio and television broadcast stations, other Hubbard Broadcasting companies include the satellite and cable networks ReelzChannel (launched in 2006) and Ovation TV, F&F Productions and the Hubbard Radio Network, which is used to distribute KSTP-AM's local talk shows to subscribing radio stations in Minnesota, North Dakota and Wisconsin.
Hubbard Broadcasting is a family-run and -operated business. In the past 10 years, Hubbard radio stations have been awarded: three NAB Marconi Awards, three NAB Crystal Awards, three NABEF Service to America Awards and four AWM Gracie Awards.