American Tower Systems Acquires OPM-USA.FAIRFAX, Va.--(BUSINESS WIRE)--Oct. 6, 1997--American Tower Systems Inc. (ATS), a wholly-owned subsidiary of American Radio Systems Corp. (NYSE NYSE See: New York Stock Exchange :AFM (Atomic Force Microscope) A device used to image materials at the atomic level. AFMs are used to solve processing and materials problems in electronics, telecom, biology and other high-tech industries. ), announced today that it has reached an agreement to acquire OPM-USA Inc. ("OPM See Oracle Process Manufacturing. "). OPM is one of the fastest growing tower companies in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , with 54 towers currently operating and 36 towers due to be completed by year-end 1997. In addition, OPM is in the process of developing an additional 160 towers which are due to be constructed during 1998. All of OPM's towers are located along major highways in the southeastern United States (primarily Florida), and are intended to service the needs of various providers of non-broadcast wireless communications services. American Tower Systems will be purchasing the outstanding stock of OPM for a maximum consideration of approximately $105 billion, the majority of which will be paid in 1998. This amount is contingent upon OPM's ability to attain certain targets relating to the number of towers completed and the run-rate operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. produced by those towers. ATS also has agreed to fund certain capital expenditures relating to the development of the roughly 190 towers, which is expected to occur over the next 12 to 16 months. In a separate transaction, American Tower has agreed to purchase six towers in Tucson, Ariz. from Tucson Communications Co. These towers are all located on one site, which is the pre-eminent broadcasting site in Tucson. The towers will be acquired for approximately $12.3 million. Steve Dodge, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of American Tower, stated, "These are two important steps in our pursuit of undisputed leadership in this very young and explosive industry." American Tower Systems develops, acquires, manages and markets antenna sites for the wireless communications industry. Pending the closing of all announced transactions, ATS will own and/or manage approximately 921 communications sites throughout the United States. ATS is headquartered in Fairfax, Va., with regional offices in Massachusetts, Connecticut, New Jersey, Pennsylvania, Washington, D.C., South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , Florida, Texas and California. On Sept. 19, 1997, American Radio Systems entered into a merger agreement with Westinghouse Electric Corp. pursuant to which its radio operations will become a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Westinghouse. Consummation of the transaction is subject to regulatory approval. Prior to and as a condition of the merger, American Radio Systems will distribute to its shareholders its communications tower business. -0- American Tower Systems management will be conducting a conference call at 2:00 P.M. (EST EST electroshock therapy. EST abbr. electroshock therapy ) (1-800-288-8974) on Monday, Oct. 6, 1997 and will be available for questions. A recording of the call will be available at 1-800-475-6701 (Access Code 359401) beginning at 6:30 P.M. on Oct. 6 and ending on Oct. 20 at 11:59 P.M. for those parties unable to listen to the live call. CONTACT: American Radio Systems Joe Winn/Bruce Danziger, 617/375-7500 |
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