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Armed with a war chest of $130 million to $155 million, Booth American Co. in Detroit plans to move aggressively to acquire cable systems, radio stations, and possibly TV stations for its communications empire.
John Booth II, 35, and his brother Ralph, 32, expect to add a small cable company within 30 days, and are wrapping up deals to buy radio stations in the Bay City/Saginaw area and in Seattle.
The focus of their acquisitions will be primarily in the South and in California, although acquisitions in Michigan are possible.
About $30 million of the company's war chest came from the sale of stock in the Evening News Association, which was sold to Gannett Co. Inc. last year for $717 million. Booth American owned a little less than 5 percent of the shares, John Booth said.
The other monies -- from $100 million to $125 million -- are from Booth American resources, according to a detailed, 30-page acquisition plan put together this year by the company. Both executives are "recommitting the company to an aggressive acquisition program," the plan says.
The company had already begun an acquisition program before the sale of its newspaper stock. The extra money just improved the company's ability to buy properties, Ralph Booth said.
Booth American might go it alone on acquisitions, or join in ventures with other companies, depending on the cost of media properties, according to John Booth.
The company made $7.5 million in 1976 when it had about 300 employees and 14 radio stations, Ralph Booth said. It will make between $65 million and $70 million in 1986, he said. The company currently employs 450 people and owns 10 radio stations.
Booth American was founded in 1939 by the brothers' father, John L. Booth. The first radio station he purchased was WJLB-AM, which the company still owns, but it is now an FM station. The company began buying cable properties in the...