Clear Channel Outdoor Holdings, Inc. Closes Sales of Five Outdoor Markets to Lamar Advertising Company for $458.5 Million
January 7, 2016 - New York, New York – Clear Channel Outdoor Holdings, Inc. (NYSE:CCO), a subsidiary of iHeartMedia, Inc. (OTCBB:IHRT), today announced the closing of two transactions involving the sale by its Clear Channel Outdoor Americas segment (CCOA) of non-strategic outdoor markets for $458.5 million, in the aggregate, to Lamar Advertising Company (Nasdaq: LAMR).
The first transaction is the sale of Reno, NV; Seattle/Tacoma, WA; and Des Moines, IA. On a trailing 12-month basis ended September 30, 2015, these markets generated $40.9 million in net revenues and $18.9 million in OIBDAN1. The second transaction includes Cleveland, OH and Memphis, TN, which generated $35.6 million in net revenues and $17.8 million in OIBDAN1 on a trailing 12-month basis ended September 30, 2015. The aggregate purchase price of $458.5 million represents a blended multiple of 12.5x of the five markets’ OIBDAN1 on a trailing 12-month basis ended September 30, 2015. With these transactions, Clear Channel Outdoor Americas (CCOA) now has operations in 44 of the top 50 U.S. markets.
“Lamar made a very attractive offer that makes sense for CCOA, given our focus on core markets where we have a strong presence and scale,” said Scott Wells, CEO of CCOA. “These transactions give us more focused operations and free up resources to continue to drive innovation in the out-of-home space, and are a win for both companies.”
The Company is considering the optimal uses of the proceeds of the sales.
1 OIBDAN is a non-GAAP financial measure. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. OIBDAN does not represent and should not be considered an alternative to operating income, as determined under GAAP. For a reconciliation of OIBDAN to operating income, please see our Current Report on Form 8-K dated January 7, 2016.