Border Media Partners, which owns and operates Hispanic-oriented radio stations in five Texas markets, has brought in a new CEO and a healthy chunk of new investment from a consortium that includes Goldman Sachs.
BMP announced Thursday that it has appointed Jeffrey T. Hinson president and CEO of the company. He replaces Tom Castro, BMP's founder, in the position; Mr Castro now assumes the position of vice chairman of the board. The appointments go into effect July 1.
In addition, BMP reported Thursday that Vestar Capital, Goldman Sachs Urban Investment Group , and Darby Overseas had invested $111 million in equity capital in the company on May 31. Darby has been investor in BMP since the radio company's inception, and in a release the investors said they have committed additional capital to support future growth.
Vestar Capital's Managing Director Ken O'Keefe and Goldman Sachs' Managing Director Kevin Jordan were appointed as co-chairmen of the board of directors for BMP.
"When I started Border Media, my vision was to build a leading Spanish language broadcasting company," Mr. Castro said in a release. "Four years later, we now have 33 radio stations in attractive Hispanic/Latino markets and are well positioned to build on this foundation going forward."
When he started the company, Harvard-educated Mr. Castro was no stranger to Hispanic broadcasting -- in 1993 he founded El Dorado Communications, a successful chain which owned Hispanic radio stations in Los Angeles, Dallas and Houston.
Mr. Hinson, who has worked with BMP as a special adviser since 2006, has more than 10 years experience in the Spanish language media industry. He was previously executive vice-president and chief financial officer of Univision Communications, the largest Spanish language media company in the United States, as well as senior vice-president and chief financial officer of Hispanic Broadcasting Corporation, the largest Spanish language radio operator in the United States.
He is also a member of the board of directors of Live Nation Inc, a live-events company spun off from Clear Channel Communications; TiVo, Inc., the creator of television services for digital video recorders; and Windstream Corp., a provider of voice, broadband, and entertainment services to customers in 16 states.
Mr. Hinson will head a company that has been well capitalized from its start.
Before this latest infusion of cash, BMP Radio reported it has raised more than $290 million in capital since it was founded four years ago by Mr. Castro and RGG Capital Partners LLC. Besides the investment banking colossus Goldman Sachs, the new partners include Vestar, an almost two-decade-old private equity firm managing about $7 billion around the globe, and Darby, the private equity arm of Franklin Templeton Investments.
"I am very excited about joining Border Media. Our investors, Vestar Capital Partners, Goldman Sachs Urban Investment Group and Darby Overseas Investments, have committed substantial financial and strategic resources to help fuel our growth," Mr. Hinson said. "I look forward to working with Tom, the company's employees and our investors, to position Border Media as a leading company serving growing Hispanic communities throughout the United States."
