Archway Broadcasting Group, LLC Completes First Three Acquisitions.
ATLANTA, Ga.--(BUSINESS WIRE)--March 12, 2003
Transactions Made Possible by Broadcast Industry Created Ownership
Archway Broadcasting Group, LLC announced that it has completed the asset acquisition of four radio stations from Eastern Carolina Broadcasting Company, Inc. for $6.5 million in cash. The four stations, WRHT-FM, WCBZ-FM, WNBR-FM, and WZBR-FM, serve the tri-city market of Greenville-New Bern-Jacksonville, North Carolina, the 84th largest radio market in the U.S. according to Arbitron. On February 27, 2003, Archway completed the asset acquisition of two additional stations serving the Greenville, NC market. The two stations, WGPM-FM and WCZI-FM, were acquired from New East Communications Inc. for $3.0 million in cash.
Separately, Archway announced that it has completed the asset acquisition of two radio stations from Equity Broadcasting Corporation for $8.0 million in cash. The two radio stations, KLEC-FM and KHTE-FM, serve the market of Little Rock, Arkansas, the 85th largest Arbitron radio market.
In addition to these three completed transactions, Archway is awaiting FCC approval to complete the acquisition of four radio stations in Columbus, Georgia, the 175th largest Arbitron radio market. Archway is also awaiting FCC approval on the acquisition of one additional radio station in Little Rock, AR. Upon consummation of all pending acquisitions, Archway will own thirteen radio stations in three southern markets. All of these transactions were made possible by Archway's lead equity sponsor, Quetzal/JPMorgan Partners. Quetzal/JPMorgan Partners, is a private equity fund created in 2000 by the broadcast industry and JPMorgan Partners to increase ownership diversity in the communications industry.
Archway's CEO and President is Al Vicente, formerly Senior Vice President of Pamal Broadcasting. He commented, "These stations give Archway a solid base in each market. Combined with the acquisitions pending in each market, our company is well positioned to be a formidable competitor." Mr. Vicente is a veteran African-American broadcast executive who brings considerable execution and leadership experience to Archway. "I am proud of Archway's partnership with Quetzal. Quetzal has helped me achieve my career aspiration of broadcast ownership, " Vicente said.
"Al Vicente brings an ideal mix of operating experience and seasoned leadership to the Archway team and we are pleased to partner with him on this project," said Reg Hollinger, Managing Member of Quetzal/JPMorgan Partners. "Archway represents a solid addition to our list of promising investments in the media industry and we look forward to growing this company with him," Hollinger said.
"Archway is Quetzal's fourth portfolio company in the radio industry and we are extremely pleased with the substantial progress Al and his team have made in building Archway," said Lauren Tyler, Managing Member of Quetzal/JPMorgan Partners. "We believe that these first three acquisitions are only the beginning of what will develop as a strong and influential radio company," Tyler said.
About Archway Broadcasting Group
Archway was formed in July 2002 by private equity firm Quetzal/JPMorgan Partners, LLC to acquire radio stations throughout the southern United States. Headquartered in Atlanta, GA, Archway seeks to aggregate radio stations in markets where it can quickly attain a strong competitive position. Archway's operating strategy is based on turning around under-performing stations and improving cash flow over time. Including all completed and pending acquisitions in this initial start-up phase, Archway will own and operate thirteen stations across the three markets of Greenville, NC, Columbus, GA and Little Rock, AR.
About Quetzal/JPMorgan Partners
Quetzal/JPMorgan Partners, LP is a $170 million private equity fund focused exclusively on investing in ethnic and women-owned, controlled, or managed communications companies. The fund is the product of an innovative initiative spearheaded by 15 world-class media companies in 2000. Quetzal/JPMorgan Partners is a strategic affiliate of JPMorgan Partners, a global private equity fund with over $24 billion under management. Other current portfolio companies of Quetzal/JPMorgan Partners include Inner City Media Corporation, Radio One, Inc. and ChitChat Media Corporation.
The limited partners of Quetzal/JPMorgan Partners, LP include: JPMorgan Partners, the private equity unit of JPMorgan Chase & Co., as well as Viacom, Inc./CBS Corporation/ Infinity Broadcasting Corporation, Clear Channel Communications, Fox Television Stations, Inc./News Corporation Limited, ABC/The Walt Disney Company, Belo Ventures, Inc., Cox Enterprises, Inc., Tribune Broadcasting, Bonneville International Corporation, Cumulus Media, Inc., Emmis Communications Corporation, Entercom Communications Corporation, Radio One, Inc., Susquehanna Radio Corporation and Granite Broadcasting Corporation.
|Printer friendly Cite/link Email Feedback|
|Date:||Mar 12, 2003|
|Previous Article:||Univec Enters Direct to Consumer Distribution Agreement.|
|Next Article:||Fitch Rates Verizon Virginia Debt Issue 'AA'.|