After 80 years, family-owned regional radio network is swallowed up
A radio network of 58 stations and 46 digital outlets across 33 markets will be created through the $307 million takeover of the family-owned Grant Broadcasting by the Australian Radio Network.
Sunshine Coast's hot 91.1 is among the stations being sold to ARN.
The deal brings an end to the 80 years of independent operation of radio in regional Australia by Grant Broadcasting, but the company said there were strong cultural ties between it and ARN, a subsidiary of HT&E.
However, industry speculation was that the deal would mean that ARN would have to sell Brisbane-based 4KQ because under regulator rules it had reached its threshold of broadcast licenses in the broader Brisbane region.
Grant owns stations in Ipswich (River 94.9) and Kix Country at Lowood, Hot 91.1FM and Zinc 96.1 FM on the Sunshine Coast, Hot Tomato on the Gold Coast as well as stations in Bundaberg, Gladstone, Rockhampton, Mackay, Townsville and Cairns.
Among ARN’s network is 4KQ the KIIS stations, including 97.3 in Brisbane, and stations in the major capitals.
HT&E said the rationale for the takeover was the high quality footprint across Australia and the delivery of content across a wider audience.
The deal was expected to deliver 20 per cent earnings-per-share accretion.
Grant has been run for 40 years by Janet Cameron, who is still on the board and is the daughter of the founder Walter Grant. Alison Cameron is the existing chief executive.
HT&E managing director Ciaran Davis said it was rare than an asset of this quality and strategic fit became available.
“Strategically, this transaction fits very well with the growth ambitions we have for HT&E, allowing is to expand our audience base and fast-track the delivery of our digital audio content and advertising opportunities across Australia.
“The combined network will be made up of 58 stations, across 33 markets, delivering innovative, digitally enabled commercial solutions at the scale that our advertising partners seek.”
Grant chief executive Alison Cameron said the company was delighted with the deal.
“For 80 years, Walter Grant, his daughter Janet Cameron and her family have been operating regional radio stations that have serve local communities in regional Australia,” she said.
“We are very proud of the connection the stations have with those communities and with our staff for continuing that commitment.
“Both companies are profitable entities in their own rights but this partnership will deliver scale, digital acceleration and ensures out future profitability.”
