Clear Channel Outdoor Holdings, Inc. has sold its Latin American operations in Mexico, Peru, and Chile to Global Media US LLC for $20 million, with the potential for an additional earn-out. This strategic decision aims to enhance liquidity and refocus on American and airport segments, indicating a strong commitment to portfolio optimization. The transaction will be reported as discontinued operations in compliance with GAAP standards.
Clear Channel Outdoor Holdings, Inc. has confirmed the successful sale of its operations in Mexico, Peru, and Chile to Global Media US LLC for $20 million at closing, along with the potential for an additional $1.25 million earn-out based on performance. This strategic move aims to enhance liquidity and focus on the company’s American and airport segments. CEO Scott Wells emphasized the importance of this transaction for optimizing their portfolio, expressing gratitude for the efforts of their team in those regions. The sale aligns with Global Vía Pública’s strategy to bolster its Latin American business and enhance its advertising platform, according to Federico Diez, the president of Global Vía Pública. This transaction separates the sold entities as discontinued operations in the company’s financial reporting, in compliance with U.S. GAAP accounting standards. Clear Channel Outdoor engaged Moelis & Company LLC to provide financial advisory services during this sale process, further reinforcing the importance of this transaction for the company’s operational strategy.
Clear Channel Outdoor Holdings, Inc. has expanded its strategic focus by divesting its businesses in Latin America, specifically in Mexico, Peru, and Chile, to Global Media US LLC, a move that is seen as a significant shift towards optimizing its operational portfolio. Such strategic sales are often undertaken by companies to streamline operations and focus on core business areas that align with current growth opportunities. The sale is expected to positively impact the company’s liquidity and financial standing while undergoing necessary accounting adjustments for discontinued operations. Beyond the financial implications, the move is part of a larger trend within the advertising industry to leverage local markets effectively and align operations geographically with the company’s strengths.
The sale of Clear Channel Outdoor’s operations in Latin America to Global Media US LLC marks a critical step toward optimizing the company’s portfolio and enhancing its financial flexibility. This transaction not only reflects a solid execution of strategic priorities but also demonstrates the commitment of leaders in both companies to drive continued growth and innovation in outdoor advertising. Clear Channel Outdoor’s restructuring underlines its dedication to focusing resources on its primary growth segments within the United States market, paving the way for future investments and opportunities.
Original Source: www.prnewswire.com
