Clear Channel Outdoor's Strategic Shift: Selling Europe-North Segment to Bauer Media for $625 Million
AInvestFriday, Jan 10, 2025 8:09 pm ET
2min read
CCO --



Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) has announced a significant strategic move by entering into a definitive agreement to sell its Europe-North segment to Bauer Radio Limited, a subsidiary of Bauer Media Group. The expected purchase price of $625 million represents a transaction multiple of approximately 6.5x Europe-North segment results for the twelve months ended September 30, 2024. This sale is a crucial step in Clear Channel Outdoor's strategic plan to optimize its portfolio and focus on growing its America and Airports segments, organically improving cash flow, and reducing leverage on its balance sheet.

Upon completion of this transaction, Clear Channel Outdoor will have divested the substantial majority of its European operations, enabling the company to concentrate resources and efforts on its core segments in the Americas and Airports. This strategic shift is expected to drive growth and enhance the company's competitive position in these key markets.

Bauer Media Group, a 150-year-old family-owned media company, is acquiring Clear Channel's Northern Europe business with estimated sales of around 600 million euros for the past year 2024. This acquisition makes Bauer Media a leading DooH provider and the market leader in Scandinavian countries. The new out-of-home business will be part of Bauer Radio Limited.

The all-cash consideration represents a transaction multiple of approximately 6.5x Europe-North segment results for the twelve months ended September 30, 2024. The Company will use the anticipated net proceeds from the sale, after payment of transaction-related fees and expenses, to prepay in full the outstanding CCIBV term loans in the principal amount of $375 million, plus any accrued interest. The remaining expected net proceeds will be subject to the asset sale provisions of the agreements governing the remainder of the Company's indebtedness.

Yvonne Bauer, Chair of the Bauer Media Board, commented, "This acquisition represents a pivotal step in advancing our Group's refocused strategy. By enhancing our core media and related businesses while driving forward our digital transformation, this move broadens our capabilities and strengthens our position as a major player in the highly competitive media industry. We look forward to welcoming the team to Bauer Media. Together, we will create a comprehensive and innovative media offering that meets the evolving needs of our advertisers and audiences across the region."

Justin Cochrane, Chief Executive Officer of Clear Channel Outdoor UK & Europe, added, "We look forward to joining Bauer Media Group to build upon the strong foundation that we have established in these European markets as a part of Clear Channel Outdoor. The consistent top-line performance of our Europe-North assets year-to-date underscores the growing demand in these markets and the dedication of our teams to executing for our clients and partners."

The transaction is expected to close in 2025, upon satisfaction of regulatory approvals. If approvals have not been obtained by an outside date of up to 24 months from the date hereof, a cash fee of $20.0 million is payable to the Company. The agreement contains customary warranties and undertakings, including non-compete and non-solicit undertakings.

In conclusion, Clear Channel Outdoor's sale of its Europe-North segment to Bauer Media Group for $625 million is a strategic move that allows the company to focus on its core segments in the Americas and Airports. This transaction enables Bauer Media Group to expand its capabilities and strengthen its position in the highly competitive media industry, while Clear Channel Outdoor can concentrate resources and efforts on driving growth and enhancing its competitive position in its key markets.
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