Citadel to Acquire 11 Radio Stations
By Katy Bachman
Wednesday, May 14 2003
Wednesday, May 14 2003
Published on AllBusiness.com
Citadel Broadcasting, the sixth largest radio group, has an agreement to acquire 11 radio stations in three markets from Wicks Broadcasting, for $133 million. Although the company has purchased stations to expand its presence in particular markets, the Wicks deal is the company's first major acquisition since Farid Suleman exited Infinity Broadcasting as president and CEO to become CEO of Citadel in Feburary 2002.
With the sale, Wicks, a division of The Wicks Group of Companies, exits the radio business. In January, Wicks completed the sale of five radio stations in Saginaw, Mich., to NextMedia Group for $55.5 million.
Citadel will enter three new markets, with four FM stations in New Orleans, La., the 44th largest radio market, four FMs and one AM station in Des Moines, Iowa, market No. 91, and two FM stations in Springfield, Mo., the No. 144 market.
"These acquisitions are consistent with the company's strategy to acquire stations in the top 100 markets," said Suleman. By acquiring stations in New Orleans, Citadel is also expanding its presence in Louisiana, where it owns six stations in Baton Rouge and eight stations Lafayette.
Since he became CEO, Suleman has been preparing the company to go public.
Owned by private investment group Forstmann Little & Co. which purchased the company in June 2001 and took it private, Citadel filed an initial public offering for $575 million last June and amended it last November. Citadel currently owns and operates 205 stations in 42 mid- and smaller-sized markets.
With the sale, Wicks, a division of The Wicks Group of Companies, exits the radio business. In January, Wicks completed the sale of five radio stations in Saginaw, Mich., to NextMedia Group for $55.5 million.
Citadel will enter three new markets, with four FM stations in New Orleans, La., the 44th largest radio market, four FMs and one AM station in Des Moines, Iowa, market No. 91, and two FM stations in Springfield, Mo., the No. 144 market.
"These acquisitions are consistent with the company's strategy to acquire stations in the top 100 markets," said Suleman. By acquiring stations in New Orleans, Citadel is also expanding its presence in Louisiana, where it owns six stations in Baton Rouge and eight stations Lafayette.
Since he became CEO, Suleman has been preparing the company to go public.
Owned by private investment group Forstmann Little & Co. which purchased the company in June 2001 and took it private, Citadel filed an initial public offering for $575 million last June and amended it last November. Citadel currently owns and operates 205 stations in 42 mid- and smaller-sized markets.
