Buyout (LBO, MBO, MBI) • Media

21st Century Group and Goldman Sachs Merchant Banking Acquire URBan Radio Broadcasting

On July 19, 2005, 21st Century Group and private equity firm Goldman Sachs Merchant Banking acquired media company URBan Radio Broadcasting for 17M USD

Acquisition Context
  • This is 21st Century Group’s 2nd and Goldman Sachs Merchant Banking’s 3rd transaction in the Media sector.
  • This is 21st Century Group’s 2nd and Goldman Sachs Merchant Banking’s 51st largest (disclosed) transaction.
  • This is 21st Century Group’s 8th and Goldman Sachs Merchant Banking’s 13th transaction in the United States.
  • This is 21st Century Group’s 1st and Goldman Sachs Merchant Banking’s 2nd transaction in Florida.

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M&A Deal Summary

Date July 19, 2005
Target URBan Radio Broadcasting
Sector Media
Buyer(s) 21st Century Group
Goldman Sachs Merchant Banking
Deal Type Buyout (LBO, MBO, MBI)
Deal Value 17M USD

Target Company

URBan Radio Broadcasting

Hallandale Beach, Florida, United States
The goal of the company is to acquire and operate clusters of radio stations in small and mid-sized markets throughout the United States, which will serve a diverse marketplace of audiences and advertisers.Urban owns and operates 23 radio stations located in Alexandria, Louisiana; Muscle Shoals, Alabama; Columbus, Mississippi; Meridian, Mississippi; Tupelo, Mississippi and Toledo, Ohio.
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Buyers Overview 2

Buyer

21st Century Group

Dallas, Texas, United States

Category Private Equity Firm
Founded 1998
PE ASSETS 166M USD
Size Small
Type Sector Agnostic
DESCRIPTION

21st Century Group is a private equity firm that targets lower middle-market company investments. The Firm looks for businesses generating annual sales of $15 to $150 million and valued between $15 and $100 million. Sectors of interest include manufacturing, value-added distribution, services, and media. Prospective transactions include divisions or subsidiaries of public or private companies, private companies seeking liquidity, family owned companies seeking intergeneration transfer of wealth, and take privates. 21st Century was formed in 1998 and is based in Dallas, Texas.


Deal Context for Buyer #
Overall 8 of 11
Sector: Media 2 of 2
Type: Buyout (LBO, MBO, MBI) 8 of 8
State: Florida 1 of 1
Country: United States 8 of 11
Year: 2005 1 of 1
Size (of disclosed) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-10-01 Integrity Packaging Solutions

Palatine, Illinois, United States

Integrity Packaging Solutions is a manufacturer of custom paperboard folding cartons for a wide range of uses including frozen foods, bakery, dry goods, pharmaceuticals, and personal care. Integrity Packaging Solutions is based in Palatine, Illinois.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-12-01 Republic Companies

Dallas, Texas, United States

Republic Companies, Inc. is an insurance company providing personal and commercial property and casualty insurance products to individuals and small to medium business primarily in Texas.

Sell -
Buyer

Goldman Sachs Merchant Banking

New York, New York, United States

Investor


Category Private Equity Firm
Founded 1986
PE ASSETS 155.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Goldman Sachs Merchant Banking Division is the investment arm of Goldman Sachs. The primary corporate investment group within the Merchant Banking Division is Goldman Sachs' direct investment arm. GS's direct investment arm consists of GS Capital Partners, GS Mezzanine Partners, and GS Growth Partners. GS Capital Partners is the direct corporate equity investment group which seeks LBO, recapitalization, and growth investments to help fund acquisitions, expansions, recapitalizations, restructurings, buyouts, and take privates. GS Capital Partners looks to invest between $50 and $800 million in opportunities in North/South America, Europe, Asia. GS Mezzanine Partners is the junior capital arm of Goldman Sachs. GS Mezzanine looks to invest between $200 million and and $800 million in transactions valued up to $10 billion. Investment proceeds are used to fund leveraged buyouts, expansion financings, recapitalizations, acquisitions, and restructurings. GS Growth looks to invest in growth equity transactions. The unit seeks to commit $20 to $200 million per investment. Other units within GS's merchant banking division include Real Estate, Infrastructure, and Urban Investments. Goldman Sachs Merchant Banking Division is based in New York City.


Deal Context for Buyer #
Overall 21 of 189
Sector: Media 3 of 6
Type: Buyout (LBO, MBO, MBI) 9 of 33
State: Florida 2 of 7
Country: United States 13 of 130
Year: 2005 5 of 10
Size (of disclosed) 51 of 51
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-05-01 ISS

Soborg, Denmark

ISS is a provider of workplace experience and facility management services, operating across regions including the UK, Ireland, the U.S., Canada, Switzerland, Germany, Australia, New Zealand, Türkiye, Spain, Denmark, and various international markets. The company delivers a broad portfolio of offerings such as office space solutions, enhanced workspace services, and production-area support. Its cleaning services cover manufacturing sites, transport and infrastructure facilities, food-related environments, and hospitality or event venues.. ISS was founded in 1901 and is based in Soborg, Denmark.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-08-11 SunGard Data Systems

Wayne, Pennsylvania, United States

SunGard Data Systems, Inc. is a provider of software and processing solutions for the financial services industry, higher education, and the public sector in over 70 countries. SunGard also offers disaster recovery, managed IT, and information availability consulting services along with business continuity management software.

Buy $11.4B