An Urban Adult Contemporary format serving the Detroit market for two decades — and at its current broadcast home since 2005 — is being spun by Urban One.
So are a group of translators that have since May 2018 served as the Motor City’s home of the “Praise” Black Gospel format.
The buyer is Beasley Media Group.
In a deal yet to be filed with the FCC but announced Monday afternoon (6/10), WDMK-FM 102.7 and the three translators in Detroit airing “Praise” are being sold to Beasley for $13.5 million in cash.
Excluding one-time transaction costs, the acquisition of WDMK-FM is expected to be immediately accretive to Beasley’s free cash flow without materially altering the company’s leverage, Beasley said in a statement.
Beasley intends to fund the acquisition through borrowings under its credit facility and cash generated from operations.
Beasley says its acquisition of WDMK-FM is complementary to the company’s current three-station cluster, comprised of Rock WRIF-FM, Classic Rock WCSX-FM and “105.1 The Bounce,” classic hip-hop WMGC-FM.
Beasley Media Group CEO Caroline Beasley said, “The accretive acquisition of WDMK-FM significantly enhances our revenue and competitive position in Detroit. Detroit is undergoing an exciting renaissance as a result of billions of dollars of new investments in the city’s residential, commercial, entertainment and cultural centers, all of which are driving new residents, businesses, tourists, employment and economic activity.
“We entered the Detroit market in late 2016 and have consistently improved the operating results of the three stations we acquired, and we believe the proposed transaction is a strategically and financially compelling growth opportunity for our shareholders,” she continued. “The addition of WDMK-FM will mark further progress toward our goal of capturing 30%t revenue share in each of our markets while delivering valuable synergies and the potential for SOI margin improvement.”
The transaction is expected to close during fourth quarter of 2019.
Serving as the exclusive broker in this transaction is Boca Raton, Fla.-based Michael Bergner of Bergner & Co.