Clear Channel Outdoor Holdings, Inc. sold its businesses in Mexico, Peru, and Chile to Global Media US LLC for $20 million in cash, with additional earn-out potential. The transaction aims to boost liquidity and refocus on U.S. and airport operations. It will impact financial reporting as discontinued operations, enhancing the company’s strategic positioning.
Clear Channel Outdoor Holdings, Inc. has sold its operations in Mexico, Peru, and Chile to Global Media US LLC, known as Global Vía Pública. This deal was finalized in a simultaneous sign and close transaction. The company received $20 million in cash immediately, with the potential for an additional $1.25 million based on performance metrics. The sale’s proceeds are intended to enhance Clear Channel’s liquidity.
CEO Scott Wells expressed that this divestiture allows the company to optimize its portfolio, emphasizing growth in the America and Airports segments and strengthening the company’s balance sheet. Federico Diez, President of Global Vía Pública, indicated that the acquisition aligns with their strategic objectives and will bolster their Latin American operations, enhancing outdoor advertising services for clients.
The ongoing process for selling Clear Channel’s Brazilian business continues. The sale of these Latin American assets has led to a classification as discontinued operations, affecting the company’s financial reporting. Under U.S. GAAP, the related assets and liabilities will now be separately categorized in financial statements, with adjustments reflected in prior periods.
Moelis & Company LLC served as a financial advisor during this transaction, assisting in the sale process. As a leader in out-of-home advertising, Clear Channel Outdoor Holdings aims to innovate with its dynamic advertising platform, integrating digital technology and data analytics to create effective advertising campaigns. The company emphasizes reaching millions of consumers through their diverse media assets.
Clear Channel Outdoor Holdings, Inc. operates primarily in the out-of-home advertising sector and aims to optimize its business model amid changing market dynamics. The recent sale of its Latin American businesses to Global Media US LLC is part of a broader strategy to strengthen its focus on the American market and airports, addressing liquidity needs and improving financial health through divestiture. This move allows the company to concentrate on regions and segments with potential growth opportunities, while maintaining a commitment to innovative advertising solutions using advanced technologies.
The sale of Clear Channel’s operations in Mexico, Peru, and Chile to Global Media US LLC represents a strategic realignment towards enhancing profitability and growth in the American market. With the transaction valued at $34 million, the company is poised to utilize proceeds to improve liquidity and focus on its core segments. This transition marks a significant step in the company’s broader strategy for operational optimization and market expansion.
Original Source: www.prnewswire.com
