Sinclair Broadcast Group Announces Agreement To Purchase The Assets Of Dielectric
BALTIMORE, June 18, 2013 /PRNewswire/ -- Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) (the "Company" or "Sinclair") announced that it has entered into a definitive agreement to purchase the assets of Dielectric from SPX Corporation, for an immaterial and leverage neutral purchase price. Dielectric is the nation's largest manufacturer of broadcast television, radio and wireless antennas, transmission lines, and RF systems.
Commenting on the transaction, David Smith, President and CEO of Sinclair stated, "Dielectric has supplied more than two-thirds of the TV industry's high power antennas and its name is synonymous with expert engineering and quality products. We feel fortunate to have this opportunity to acquire the Dielectric intellectual property and assets related to our most critical infrastructure. This acquisition was a logical choice given our in-house RF engineering expertise and our ownership of Acrodyne Services, which installs and services broadcast transmitters and mobile DTV upgrades. Further, if and when a spectrum repack occurs, Dielectric will be there to support that effort."
New products from Dielectric's diversified RF catalog, along with support for existing installed product, will be provided by many of the same talented people who have helped to make Dielectric one of the most well-known and trusted names in the U.S. broadcast industry. Dielectric will be operated as a wholly-owned subsidiary of Sinclair (Dielectric, LLC) with a management and operational team comprised of capable, experienced individuals drawn from the Dielectric staff. Dielectric will maintain operations at their present facility in Raymond, Maine.
On a pro forma basis assuming consummation of all previously announced transactions, Sinclair Broadcast Group, Inc., the largest and one of the most diversified television broadcasting companies, will own and operate, program or provide sales services to 140 television stations in 72 markets. Sinclair's television group will reach approximately 34.8% of U.S. television households and will be affiliated with all major networks. Sinclair's television portfolio will include 32 FOX, 20 MNT, 23 CW, 19 ABC, 25 CBS, 14 NBC, 5 Univision, one Azteca and one independent station. Sinclair owns a broadcast transmission and mobile DTV related company and various non-broadcast related companies. The Company regularly uses its website as a key source of Company information which can be accessed at www.sbgi.net.
The matters discussed in this release, include forward-looking statements regarding, among other things, future operating results. When used in this news release, the words "outlook," "intends to," "believes," "anticipates," "expects," "achieves," and similar expressions are intended to identify forward-looking statements. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including and in addition to the assumptions identified in this release, but not limited to, our ability to satisfy the closing conditions for the Dielectric acquisition discussed in this release, including obtaining required governmental approvals, our ability to satisfy the closing conditions on our previously announced pending acquisitions, our ability to maximize our operating synergies in connection with the pending acquisitions, successful execution of our small market strategy, the impact of changes in national and regional economies, the volatility in the U.S. and global economies and financial markets, successful execution of outsourcing agreements, pricing and demand fluctuations in local and national advertising, volatility in programming costs, the market acceptance of new programming, the CW Television Network and MyNetworkTV programming, our news share strategy, our local sales initiatives, the execution of retransmission consent agreements, our ability to identify and consummate investments in attractive non-television assets and to achieve anticipated returns on those investments once consummated, and any other risk factors set forth in the Company's most recent reports on Form 10-Q, Form 10-K and Form 8-K, as filed with the Securities and Exchange Commission. There can be no assurances that the assumptions and other factors referred to in this release will occur. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements except as required by law.
SOURCE Sinclair Broadcast Group, Inc.