Meruelo Group to acquire KWHY-TV in LA.

The Meruelo Group has reached an agreement to acquire KWHY-TV, an NBCU-owned television station in Los Angeles, California, it was announced by Meruelo, NBCU and Bahia Honda LLC. The acquisition is subject to approval by the Federal Communications Commission.

“As one of the oldest independent Spanish-language television stations in the U.S., KWHY is a station with a great history, and an ongoing mission to serve a vibrant and growing community,” commented Alex Meruelo, Founder and Chief Executive Officer of The Meruelo Group. “We are honored to be the only Latino-owned station in Los Angeles, and look forward to continuing KWHY’s proud tradition as we bring the very best in entertainment, news, and community affairs programming to the people of Los Angeles, while at the same time establishing KWHY as a powerful business partner to advertisers across Southern California. We thank NBC Universal for the opportunity to map out the next phase in the evolution of broadcast in Los Angeles, and we look forward to working closely with the FCC and Bahia Honda as we finalize the details of this transaction.”

With roots dating to 1986, The Meruelo Group is a diversified privately-held holding and investment company founded by prominent U.S. Latino business executive Alex Meruelo. The Meruelo Group holds diverse interests in banking and financial services, food restaurants and services, construction and engineering, real estate, and private equity. Those interests include the La Pizza Loca restaurant chain, Commercial Bank of California, and a number of prominent Southern California utility construction firms. In addition, Mr. Meruelo and The Meruelo Group have long been committed to the Latino community of greater Southern California through their extensive real estate investments and developments in primarily Latino neighborhoods.

Bahia Honda LLC, which is managed by Jose Cancela, a respected and highly qualified professional with more than 30 years experience in Hispanic broadcasting, is a divestiture trust formed under the FCC’s rules to operate the station and oversee its sale in the event that the sale had not been completed by close of Comcast’s acquisition of a 51% ownership interest in NBC Universal.

The Comcast-NBC transaction received regulatory approval on January 18, 2011, and is expected to close by the end of January. Concurrently with the closing of that transaction, NBC Universal will place KWHY into the Bahia Honda divestiture trust which will administer the final stages of the sale and the regulatory process.

The Meruelo Group’s purchase of KWHY is expected to be completed by mid-year. The sale of KWHY to The Meruelo Group meets the diversity commitment made by NBCU in the course of the Comcast-NBCU regulatory process to use its best efforts to ensure that the station is sold to a minority controlled ownership group. Terms of the agreement were not disclosed.

In working to identify prospective buyers for the station, NBCU entered into an agreement with Minority Media and Telecommunications Council to identify prospective qualified buyers, with particular emphasis on identifying purchasers representing diverse communities.

“With his outstanding business acumen, deep roots in Southern California, and strong ties to the Latino community, Mr. Meruelo is the perfect choice to lead KWHY into the future,” commented Jose Cancela. “This is a great day for both Hispanic broadcasting in Southern California and for the diverse communities of Los Angeles. I thank NBCU for involving Bahia Honda in this transaction, and for the company’s good work in helping to identify a steward who can build on the station’s great heritage of serving Los Angeles and its thriving Latino community.”

“MMTC is pleased to have worked with NBCU to assure the inclusion, in the sale process, of bidders representing a wide variety of diverse backgrounds. The bidding was conducted in an open, transparent and inclusive manner. In fact, it was one of the best-run sales processes that I have seen in any broadcast station disposition,” commented David Honig, President of the Minority Media and Telecommunications Council and of MMTC Media Brokers.

“We thank the Minority Media and Telecommunications Council and its president, David Honig, for crucial guidance in fulfilling our commitment to identify diverse candidates to purchase the station, and we are grateful to Jose Cancela for his invaluable assistance moving forward with the sale,” commented Ronald Gordon, President of Telemundo Stations Group. “We are confident that, under Alex Meruelo’s experienced leadership, the station will be able to continue its vital mission of informing, entertaining, and making important contributions to the diverse communities that comprise one of our country’s greatest cities.”