The Firm is representing Bain Capital, The Blackstone Group and Thomas H. Lee Partners as members of an investment group that also includes Cumulus Media, Inc. in the acquisition of the radio broadcasting business of Susquehanna Pfaltzgraff Co. for approximately $1.2 billion. The investment partnership will be known as Cumulus Media Partners LLC. Each private equity investor will contribute cash and Cumulus will contribute two radio stations in Houston, Texas and two radio stations in Kansas City, Missouri in exchange for 25 percent membership interest in Cumulus Media Partners.
Susquehanna Radio is the largest privately owned radio broadcasting company in the United States and the business consists of 33 radio stations in eight markets including: San Francisco, Dallas, Houston, Atlanta, Cincinnati, Kansas City, Indianapolis and York, Pennsylvania.
The transaction is expected to be completed in the first half of 2006.
The Simpson Thacher team who worked on the transaction included Wilson Neely, Patrick Naughton, Keith Bloomfield, Ann Walker and David Evans (M&A); Alden Millard, Christine Symons and Joshua Koenig (Credit); Steve Feder (Securities) Gary Mandel and Noah Beck (Tax); Michael Isby (Environmental); Amy Abbazia (Real Estate); Brian Robbins and Michael Richman (Employee Benefits); and Jennifer Rackoff (Intellectual Property).