Beasley Broadcast to acquire Philadelphia radio station for $38 million

Beasley Broadcast Group has made a play for another radio station.

The Naples-based radio broadcaster has signed a definitive agreement to acquire WXTU-FM in Philadelphia for $38 million in cash.

The station is owned by Entercom Communications Corp.

Excluding one-time transaction costs, the acquisition is expected to immediately add to Beasley's free cash flow "without materially altering the company's leverage," according to a news release.

Beasley will use a combination of borrowings and cash generated from operations to pay for the station.

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In its news release, Beasley said the acquisition highlights its "focus on premium local programming and content" and will complement its six other radio stations and digital operations in the Philadelphia market, the ninth-largest designated marketing area in the country.

Beasley owns and operates 64 stations in 15 large and mid-size U.S. markets, including Southwest Florida.

“Our acquisition of WXTU-FM represents a strategically and financially compelling growth opportunity for our shareholders and further enhances our revenue and competitive position with a strong cluster of five FM and two AM stations in a key, top-ten market," said Caroline Beasley, CEO of Beasley Broadcast, in a statement. 

Beasley owned WXTU-FM for decades and started its country music format in 1983 "against the advice of a number of industry pundits who believed it wouldn’t succeed in the Philadelphia market," Beasley said.

In 2014, the station was part of a larger asset exchange between Beasley Broadcast and CBS Radio.

"Today, WXTU-FM remains one of the best and most listened-to country music stations in America," Beasley said.

"We are proud of this heritage and confident in our ability to continue the growth and success of WXTU-FM as part of the Beasley family of stations."

Beasley will begin operating the station under a local marketing agreement on Monday, July 23. The transaction is expected to close in the third or fourth quarter of this year, subject to regulatory approval and closing conditions.