Clear Channel Outdoor Holdings, Inc. has sold its businesses in Mexico, Peru, and Chile to Global Media US LLC for $34 million. The transaction involves $20 million in cash and a potential earn-out of $1.25 million. The company plans to use the proceeds to bolster its liquidity while continuing to focus on growth in America and Airport segments.
Clear Channel Outdoor Holdings, Inc. has announced the completion of the sale of its businesses in Mexico, Peru, and Chile to Global Media US LLC, operating as Global Vía Pública. This simultaneous transaction is valued at $34 million, yielding $20 million in cash at closing, alongside a potential earn-out of $1.25 million. The company aims to utilize the net proceeds to enhance its liquidity position.
The CEO of Clear Channel Outdoor, Scott Wells, emphasized that this sale reflects the company’s commitment to optimizing its portfolio, focusing on growth in the America and Airports segments, and strengthening its financial position. Federico Diez, President of Global Vía Pública, noted that the acquisition aligns with their strategic goals, allowing for business growth and enhanced advertising opportunities in Latin America.
The Company will report these businesses as discontinued operations starting in the fourth quarter of 2024, according to U.S. GAAP. Consequently, assets and liabilities associated with the discontinued operations will be separately presented in the financial statements, impacting prior period presentations. Moelis & Company LLC served as the financial advisor for this transaction.
Clear Channel Outdoor Holdings, Inc. is a leader in the out-of-home advertising industry, leveraging a diverse portfolio and the latest digital advertising technologies to connect advertisers with consumers. The firm continues to drive innovation in the sector, enhancing its advertising platform through programmatic capabilities and digital displays.
The Company issues caution regarding forward-looking statements made throughout the release, outlining possible risks and uncertainties that may influence future performance. Stakeholders are advised not to rely excessively on these projections as they reflect only the date of the announcement and will not be updated on new developments.
Clear Channel Outdoor Holdings, Inc. specializes in the out-of-home advertising market, operating primarily through an expansive network of digital and traditional billboards. The recent sale of its Latin American businesses is part of the company’s strategic plan to focus on more profitable sectors, particularly its operations in America and airports. By divesting underperforming segments, the company aims to optimize its financial health and operational focus, ultimately enhancing shareholder value.
In summary, Clear Channel Outdoor Holdings, Inc. has divested its businesses in Mexico, Peru, and Chile to concentrate on stronger market segments and improve its balance sheet. The transaction, completed with Global Media US LLC, is a strategic move aimed at enhancing the company’s liquidity and reinforcing its commitment to growth in core areas. Clear Channel continues to advance its position in the advertising industry amidst ongoing financial evaluations.
Original Source: www.prnewswire.com
