Clear Channel Outdoor Holdings, Inc. to Sell its Europe-North Segment to a subsidiary of Bauer Media Group for $625 Million
Clear Channel Outdoor Holdings (NYSE: CCO) has announced a definitive agreement to sell its Europe-North segment to Bauer Radio , a subsidiary of Bauer Media Group, for $625 million. The all-cash transaction, representing approximately 6.5x Europe-North segment results for the twelve months ended September 30, 2024, is expected to close in 2025 pending regulatory approvals.
The company plans to use the net proceeds to prepay the outstanding CCIBV term loans of $375 million plus accrued interest. This strategic move aligns with CCO's plan to optimize its portfolio and focus on growing its America and Airports segments, aiming to improve cash flow and reduce leverage.
Starting with Q4 2024 results, the Europe-North segment will be reported as discontinued operations, with assets, liabilities, and results presented separately in financial statements. The company engaged Moelis & Company and Deutsche Bank Securities Inc. as financial advisors for the transaction.
Clear Channel Outdoor Holdings (NYSE: CCO) ha annunciato un accordo definitivo per vendere il suo segmento Europe-North a Bauer Radio, una sussidiaria di Bauer Media Group, per 625 milioni di dollari. La transazione in contante, che rappresenta circa 6,5 volte i risultati del segmento Europe-North per i dodici mesi conclusi il 30 settembre 2024, dovrebbe concludersi nel 2025, soggetta ad approvazioni regolatorie.
La società prevede di utilizzare il ricavato netto per estinguere in anticipo i prestiti a termine CCIBV di 375 milioni di dollari più gli interessi maturati. Questa mossa strategica è in linea con il piano di CCO di ottimizzare il proprio portafoglio e concentrarsi sulla crescita dei segmenti America e Aeroporti, con l'obiettivo di migliorare il flusso di cassa e ridurre l'indebitamento.
A partire dai risultati del quarto trimestre 2024, il segmento Europe-North sarà riportato come operazioni cessate, con attivi, passività e risultati presentati separatamente nei bilanci. La società ha coinvolto Moelis & Company e Deutsche Bank Securities Inc. come consulenti finanziari per la transazione.
Clear Channel Outdoor Holdings (NYSE: CCO) ha anunciado un acuerdo definitivo para vender su segmento Europe-North a Bauer Radio, una subsidiaria de Bauer Media Group, por 625 millones de dólares. La transacción totalmente en efectivo, que representa aproximadamente 6.5 veces los resultados del segmento Europe-North para los doce meses finalizados el 30 de septiembre de 2024, se espera que se cierre en 2025, sujeto a aprobaciones regulatorias.
La empresa planea utilizar el producto neto para prepagar los préstamos a plazo de CCIBV por 375 millones de dólares más los intereses acumulados. Este movimiento estratégico se alinea con el plan de CCO de optimizar su cartera y enfocarse en el crecimiento de sus segmentos de América y Aeropuertos, con el objetivo de mejorar el flujo de caja y reducir la carga financiera.
A partir de los resultados del cuarto trimestre de 2024, el segmento Europe-North se informará como operaciones discontinuadas, con activos, pasivos y resultados presentados por separado en los estados financieros. La empresa contrató a Moelis & Company y Deutsche Bank Securities Inc. como asesores financieros para la transacción.
클리어 채널 아울도어 홀딩스 (NYSE: CCO)는 유럽-북미 부문을 바우어 미디어 그룹의 자회사인 바우어 라디오에 6억 2500만 달러에 판매하기로 한 최종 계약을 발표했습니다. 이 현금 거래는 2024년 9월 30일 종료된 12개월 동안의 유럽-북미 부문 결과의 약 6.5배에 해당하며, 규제 승인이 완료되면 2025년에 마감될 것으로 예상됩니다.
회사는 순수익을 사용하여 3억 7500만 달러의 CCIBV 만기 대출과 누적 이자를 상환할 계획입니다. 이 전략적 조치는 CCO의 포트폴리오 최적화 계획과 미국 및 공항 부문에서의 성장에 집중하는 데 맞춰지며, 현금 흐름을 개선하고 레버리지를 줄이는 데 목적이 있습니다.
2024년 4분기 결과부터 유럽-북미 부문은 중단된 운영으로 보고되며, 자산, 부채 및 결과는 재무제표에서 별도로 표시됩니다. 회사는 이번 거래를 위한 재무 고문으로 모엘리스 앤 컴퍼니와 도이치 뱅크 증권사를 선정했습니다.
Clear Channel Outdoor Holdings (NYSE: CCO) a annoncé un accord définitif pour vendre son segment Europe-Nord à Bauer Radio, une filiale du Bauer Media Group, pour 625 millions de dollars. La transaction entièrement en espèces, représentant environ 6,5 fois les résultats du segment Europe-Nord pour les douze mois se terminant le 30 septembre 2024, devrait se conclure en 2025 sous réserve des approbations réglementaires.
L'entreprise prévoit d'utiliser le produit net pour rembourser par anticipation les prêts à terme CCIBV de 375 millions de dollars plus les intérêts accumulés. Ce mouvement stratégique s'inscrit dans le plan de CCO d'optimiser son portefeuille et de se concentrer sur la croissance de ses segments Amérique et Aéroports, afin d'améliorer le flux de trésorerie et de réduire l'endettement.
À partir des résultats du quatrième trimestre 2024, le segment Europe-Nord sera présenté comme des opérations abandonnées, avec des actifs, des passifs et des résultats présentés séparément dans les états financiers. L'entreprise a engagé Moelis & Company et Deutsche Bank Securities Inc. comme conseillers financiers pour la transaction.
Clear Channel Outdoor Holdings (NYSE: CCO) hat eine endgültige Vereinbarung zur Veräußertung seines Europa-Nord-Segments an Bauer Radio, eine Tochtergesellschaft der Bauer Media Group, für 625 Millionen Dollar bekannt gegeben. Die Bargeldtransaktion, die ungefähr 6,5-mal die Ergebnisse des Europa-Nord-Segments für die zwölf Monate bis zum 30. September 2024 beträgt, wird voraussichtlich 2025 nach Erhalt der regulatorischen Genehmigungen abgeschlossen.
Das Unternehmen plant, den Nettoproceeds zu verwenden, um die ausstehenden CCIBV-Darlehen in Höhe von 375 Millionen Dollar zuzüglich aufgelaufener Zinsen vorzeitig zurückzuzahlen. Dieser strategische Schritt passt zu CCOS Plan, sein Portfolio zu optimieren und sich auf das Wachstum der Segmente Amerika und Flughäfen zu konzentrieren, mit dem Ziel, den Cashflow zu verbessern und die Verschuldung zu reduzieren.
Ab den Ergebnissen des vierten Quartals 2024 wird das Europa-Nord-Segment als aufgegebene Betriebe berichtet, wobei Vermögenswerte, Verbindlichkeiten und Ergebnisse separat in den Finanzberichten ausgewiesen werden. Das Unternehmen hat Moelis & Company und Deutsche Bank Securities Inc. als Finanzberater für die Transaktion beauftragt.
- Sale of Europe-North segment for $625 million in all-cash transaction
- Debt reduction through full prepayment of $375 million CCIBV term loans
- Strategic focus on potentially more profitable America and Airports segments
- Transaction multiple of 6.5x segment results indicates favorable valuation
- Reduction in geographical diversification and market presence
- Loss of revenue stream from European operations
Insights
This strategic divestiture of Clear Channel's Europe-North segment for
The transaction aligns with the broader industry trend of geographic consolidation and focus on core markets. By divesting European operations, CCO can redirect resources to its stronger Americas and Airports segments, potentially leading to improved operational efficiency and better capital allocation. The deal's timing appears opportunistic, capitalizing on the segment's strong performance to secure an attractive valuation.
From a financial perspective, this move should enhance CCO's credit profile by reducing leverage, while the remaining proceeds provide additional financial flexibility. The reclassification to discontinued operations will impact financial statement presentation, requiring investors to recalibrate their analysis of historical performance metrics.
This acquisition by Bauer Media Group marks a significant shift in the European outdoor advertising landscape. The strategic rationale is compelling - Bauer gains immediate scale in the outdoor advertising sector, complementing its existing media portfolio and creating potential cross-platform synergies. The deal timing coincides with the outdoor advertising sector's post-pandemic recovery and increasing digitalization trends.
The transaction demonstrates the ongoing consolidation in traditional media sectors as companies seek scale and diversification. For Clear Channel, exiting the European market allows for a more focused approach on its American operations, where market dynamics and growth opportunities may be more favorable. The consistent top-line performance mentioned in Europe-North suggests Bauer is acquiring these assets at a strong point in the business cycle.
This reshaping of the European outdoor advertising market could trigger further industry consolidation as competitors reassess their strategic positions. The emphasis on digital transformation in Bauer's strategy signals potential investments in modernizing these assets, which could accelerate the sector's technological evolution.
The all-cash consideration represents a transaction multiple of approximately 6.5x Europe-North segment results for the twelve months ended September 30, 20241. 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
"This agreement to sell our Europe-North segment is another significant step in the execution of our strategic plan to optimize our portfolio and focus on growing our America and Airports segments to organically improve cash flow and reduce leverage on our balance sheet," said Scott Wells, Chief Executive Officer of Clear Channel Outdoor Holdings, Inc. "I want to thank our team for their hard work in helping us reach this agreement. Upon completion of this transaction, we will have divested the substantial majority of our European operations."
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
The transaction is expected to close in 2025, upon satisfaction of regulatory approvals.
Accounting Treatment
During the fourth quarter of 2024, the Company's plan to sell the businesses in its Europe-North segment met the criteria to be reported as discontinued operations. In accordance with
Current Report on Form 8-K
Because January 9, 2025 has been declared a National Day of Mourning and
Advisors
The Company engaged Moelis & Company LLC and Deutsche Bank Securities Inc. as financial advisors to assist with the process to sell the Company's Europe-North segment.
About Clear Channel Outdoor Holdings, Inc.
Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) is at the forefront of driving innovation in the out-of-home advertising industry. Our dynamic advertising platform is broadening the pool of advertisers using our medium through the expansion of digital billboards and displays and the integration of data analytics and programmatic capabilities that deliver measurable campaigns that are simpler to buy. By leveraging the scale, reach and flexibility of our diverse portfolio of assets, we connect advertisers with millions of consumers every month.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "expect," "anticipate," "estimate" and similar words and expressions are intended to identify such forward-looking statements. In addition, any statements that refer to expectations or other characterizations of future events or circumstances, such as statements about the timing of closing of the sale of our Europe-North segment, the use of the proceeds therefrom, our expectations with respect to optimizing our portfolio, our expectations with respect to our America and Airports businesses, our business plans and strategies and our liquidity are forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict.
Various risks that could cause future results to differ from those expressed by the forward-looking statements included in this press release include, but are not limited to: our ability to complete the sale of the Europe-North segment on the anticipated terms and timing or at all, including obtaining regulatory approvals; disruptions from the announcement of the sale, including the diversion of management's attention from the Company's ongoing business operations; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the sale; our inability to optimize our portfolio, strengthen our liquidity and achieve the expected benefits from the sale; continued economic uncertainty, an economic slowdown or a recession; our ability to service our debt obligations and to fund our operations, business strategy and capital expenditures; the impact of our substantial indebtedness, including the effect of our leverage on our financial position and earnings; the difficulty, cost and time required to implement our strategy; the impact of the process to sell our businesses in
1 Europe-North segment results of approximately
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SOURCE Clear Channel Outdoor Holdings, Inc.
FAQ
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