Clear Channel Outdoor Holdings, Inc. has sold its Latin American businesses in Mexico, Peru, and Chile to Global Media US LLC. The deal includes a cash payment of $20 million, with potential additional earnings linked to performance. The company aims to use the proceeds to strengthen its liquidity while focusing on its America and Airports segments. Moelis & Company LLC advised on the sale, as operations in Brazil remain under review.
Clear Channel Outdoor Holdings, Inc. has successfully completed the sale of its operations in Mexico, Peru, and Chile to Global Media US LLC, known as Global Vía Pública. This transaction, which was both signed and closed simultaneously, involved an upfront cash payment of $20 million based on an enterprise value of $34 million, with potential additional earnings of $1.25 million. The company plans to utilize the proceeds to enhance its liquidity position.
Scott Wells, Chief Executive Officer of Clear Channel Outdoor Holdings, highlighted that this sale reflects the company’s ongoing efforts to optimize its portfolio, focusing on the growth of its America and Airports segments. Additionally, Federico Diez, President of Global Vía Pública, expressed enthusiasm for the acquisition, noting its alignment with strategic goals and the potential for growth in outdoor advertising campaigns.
The company plans to treat these operations as discontinued. As of the release of its fourth quarter results for 2024, Clear Channel will report the assets and liabilities of these discontinued operations separately in its financial statements, adhering to U.S. Generally Accepted Accounting Principles (GAAP).
Moelis & Company LLC served as the financial advisor during this sales process, helping facilitate the transition of these Latin American businesses. Meanwhile, efforts to sell the remaining operations in Brazil are ongoing.
Clear Channel Outdoor Holdings is recognized for driving innovation within the out-of-home advertising sector. The company is expanding its digital billboard advertising capabilities, enabling advertisers to engage millions of consumers each month with measurable, data-driven campaigns.
The press release contains forward-looking statements regarding the company’s strategies, future performance, and the anticipated impact of the sale. It is important for stakeholders to recognize the inherent risks and uncertainties associated with these statements, as outlined in the company’s SEC filings.
Clear Channel Outdoor Holdings has been shifting its focus towards optimizing its business portfolio, particularly within the lucrative America and Airports segments. This divestiture of operations in Latin America is part of a broader strategy to enhance financial stability and streamline operations. The completion of this transaction allows the company to reallocate resources effectively while maintaining a strong foothold in its primary markets. Furthermore, the ongoing sales process in Brazil indicates continued efforts towards optimizing the company’s operational structure in the region.
In conclusion, the sale of Clear Channel Outdoor Holdings’ businesses in Mexico, Peru, and Chile to Global Media US LLC marks a strategic pivot for the company towards consolidating its operational focus. The transaction is expected to improve liquidity and supports the company’s commitment to enhancing its core business segments. As the company navigates this transitional phase, its efforts to optimize operations underscore its dedication to driving growth and maintaining a robust market presence in the advertising landscape.
Original Source: www.prnewswire.com
