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Radio stations sold for GBP170m
(Yorkshire Evening Post Via Thomson Dialog NewsEdge) RADIO stations including Heart and Galaxy were sold for GBP170m today in a deal involving former ITV chief executive Charles Allen.
Chrysalis, which owns the stations along with London's LBC, has conditionally agreed to sell its radio arm to investment vehicle Global Radio, which is chaired by Mr Allen and includes backing from Irish tycoons JP McManus and John Magnier.
The disposal leaves Chrysalis with its music publishing business, home to artists including Gnarls Barkley, the Dixie Chicks and Mariah Carey.
Chrysalis chief executive Richard Huntingford plans to concentrate on growing the publishing operation following the sale of the radio stations.
Chrysalis Radio is the UK's third largest commercial broadcaster.
Global Radio wants to use the Chrysalis radio stations as a platform to grow a larger commercial radio business.
Chrysalis stations cover major regions including Yorkshire, London, Manchester, the Midlands and the North East, with an estimated six million listeners every week.
The radio business made underlying earnings of GBP10.2m in the year to August 2006, on revenues of GBP65.6m.
The proposed sale follows a review of the business launched by the group's board in February after calls from some shareholders to create more value by splitting the group up.
Shareholders Chrysalis plans to return around GBP100m to shareholders following the sale, and also expects to save around GBP3.5m in reduced overheads over the next 18 months.
The back catalogue of the company's music publishing business now contains around 65,000 copyrights, with artists ranging from Billy Idol and David Bowie to Madonna and Damon Albarn.
The company is looking for growth of between five per cent and 10 per cent a year from the publishing business.
ORCHARD Care Homes has been acquired in a management buy-out deal worth GBP175m.
The Leeds-based company, which was founded by Lawrence Tomlinson in 1984, has been purchased by chief executive Paul Mancey.
Orchard Care Homes was part of the LNT Group, which has more than 20 years of experience in the elderly care sector.
The care homes will become a separate business, run by Mr Mancey, but will continue to work with LNT to construct new homes under its construction division.
Copyright 2007 Johnston Press Plc, Source: The Financial Times Limited
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