LRC yesterday paid £1.6m cash and £138,000 in shares for the 53% of Spirit FM that it does not already own from South West Sussex Radio, valuing the station at around £3.5m.
The station - which becomes LRC's 25 thservice - has an audience of 33,000 in Chichester, Bognor Regis and Littlehampton on the south coast of England. Despite its modest size, Spirit FM made a £137,000 profit in the year to 30 September on sales of £925,000.
Wheatly, who is chief executive of LRC, said: 'We are pleased to complete the acquisition of Spirit FM. It is a leading station in its market, has a great team and it will be one of our largest stations on the south coast.'
The acquisition is the latest step in LRC's ambition to grow through small-scale acquisitions. The AIM-listed company has already established clusters of stations in the north-east and south-west of the country and recently acquired Two Boroughs Radio in Lancashire for £2.26m.
Last week in its preliminary results for the year ending 30 September the company reported an operating profit of £324,000 reversing last year's operating loss of £712,000.