Newcap Inc. has announced they have agreed to acquire radio stations Virgin 95.3 FM, Shore 104.3 FM and AM 650 from Bell Media. The agreement includes two Toronto radio stations for a price of $112 million.
The deal is subject to approval from the Canadian Radio-television and Telecommunications Commission (CRTC) and the Competition Bureau.
“The acquisition of these stations in Canada’s two largest radio markets is a rare opportunity and is a transformational move for Newcap,” said Newcap President and CEO Rob Steele in a statement. “This provides an excellent opportunity for us going forward – greatly expanding our listener base and increasing the size of our business. We specialize exclusively in radio and all of our focus and expertise is dedicated to creating successful radio stations which benefits our employees, listeners and advertising clients.”
“Parting with valued and dynamic assets is never easy,” said Jacques Parisien President, National Specialty and Pay TV, Radio and Out-of-Home, Bell Media. “However, Newcap’s acquisition of CHBM-FM, CFXJ-FM, CKZZ-FM, CHHR-FM, and CISL-AM is tremendous news for the stations’ employees, listeners and clients, as well as the Canadian radio industry. Newcap is a well-respected company and we know that their strong management team will help these stations grow.”
For the 12-month period ending May 31, 2013, the five stations had revenues of approximately $40 million.
Newcap’s acquisition of these radio stations is a result of Bell’s acquisition of Astral. Astral and Bell are reducing the number of radio stations they own in order to comply with the CRTC’s Common Ownership Policy, which limits the number of stations one company can own in a single market.