Irish radio group Bay Broadcasting has added a fourth Irish radio station to its portfolio, with the acquisition of Galway Bay FM.
Bay Broadcasting already operates Radio Nova and Sunshine 106.8, which are Dublin’s second and third most popular radio stations, as well as Ireland’s Classic Hits Radio. It employs almost 60 people at its offices in Dublin and Cork.
Bay Broadcasting is owned by Isle of Man-headquartered Step Investments, which is a privately-owned company established in 2014 with a portfolio spanning media, hospitality, education and medical sectors across Ireland and Britain. It has a turnover of more than €60 million.
Step Investments secured financing of £3.7 million (€4.3 million) from British financier, Duke Capital Limited, which typically targets SME owners. It said the investment would “enable” Bay Broadcasting to complete the acquisition.
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Established in 1989, Galway Bay FM is the leading radio station in the Galway region and broadcasts a mix of programming, including news, sport, current affairs and local content.
“The acquisition of Galway Bay FM represents an exciting addition to Bay’s growing radio portfolio and aligns with our strategy of investing in high-quality media assets,” Step chief executive Mike Ormonde said.
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“Galway Bay FM has been the voice of Galway for over three decades and, with the support of Bay’s experienced management team, we see a clear opportunity to strengthen its commercial performance, broaden its reach and move Bay into the position of being the second largest commercial radio group in Ireland.”
The financing increases Duke’s total credit financing in Step to £15.2 million. The investment terms are in line Duke’s typical cost of capital, which includes a starting yield of 13.5 per cent.
Duke has supported Step for over seven years with various forms of follow-on capital and the enlarged group now has substantial operations across the Ireland and Britain with more than 400 employees.
Neil Johnson, Duke Capital chief executive, described Galway Bay FM as a “natural addition” to Bay’s existing radio portfolio.
