Breakwater Investment Management has invested in L&L Broadcasting to fund the acquisition of Triad Broadcasting Company, an operator of radio stations, for $21 million in cash.
L&L, which stands for “live and local”, is a Portland-based radio broadcasting company formed in September 2012 by radio veteran Larry Wilson for the purpose of acquiring the assets of Triad Broadcasting Company. Triad’s radio station group is comprised 32 stations in 5 mid-sized markets (Biloxi, MS; Bluefield, WV; Fargo, ND; Hilton Head Island, SC; and Peoria, IL). Simultaneous with closing of the Triad acquisition, L&L spun off six of the acquired radio stations located in Fargo, ND to Jim Ingstad, a long-time broadcaster and local resident of Fargo, for $9.5 million.
Prior to L&L, Mr. Wilson founded Citadel Communications in 1984, starting with only two radio stations. In 2001, Citadel Communications, with over 200 radio stations, was sold to Forstmann Little for $2.1 billion. Mr. Wilson is also Chairman of Alpha Broadcasting, the owner of six radio stations in Portland, OR.
“We are absolutely delighted to be in a partnership with a world-class management team in the radio broadcasting industry,” said Saif Mansour, founder and Managing Partner at Breakwater. “We have full confidence in Larry Wilson and the ability of his highly experienced team to provide outstanding leadership in maximizing L&L’s assets organically and using its strong market position as a platform for further growth through acquisition. We are delighted to be a financial sponsor in this initial acquisition by L&L, and we look forward to the possibility of providing further acquisition financing for future targeted opportunities.”
“We have acquired a group of excellent radio stations with very special people who do superb live and local radio,” said Larry Wilson, Chairman at L&L. “We greatly appreciate the effort and flexibility of Breakwater in helping to facilitate this acquisition of Triad’s assets. We look forward to assembling world-class talent, growing dominant clusters, and developing L&L into the next growth leader in the market. Breakwater’s speed and flexible approach allowed us to close a complex transaction efficiently.”
Breakwater Investment Management specializes in direct investments in small to lower middle market growth businesses with annual sales ranging from $5 million to $100 million. The firm serves as general partner of Breakwater Structured Growth Opportunities Fund, LP, a $100 million open-ended private investment partnership organized in August 2008. The fund’s investment objective is to generate both current income and capital appreciation through secured debt investments accompanied with equity participation rights, primarily in growth-oriented companies across a variety of industries. The firm is based in Los Angeles (www.breakwaterfund.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 5-7-13