Clear Channel Outdoor Holdings, Inc. Completes Sale of Latin…

Clear Channel Outdoor Holdings, Inc. has sold its operations in Mexico, Peru, and Chile to Global Media US LLC for $20 million, with the potential for an additional $1.25 million. This move is part of the Company’s strategy to focus on its American and Airports segments, and improve liquidity. The remaining business in Brazil is still under consideration for sale.

Clear Channel Outdoor Holdings, Inc. has finalized the sale of its operations in Mexico, Peru, and Chile to Global Media US LLC, known as Global Vía Pública. This transaction, which was completed in a simultaneous sign and close deal, yielded $20 million in cash upfront based on an enterprise value of $34 million. Additionally, the Company may earn $1.25 million, subject to customary adjustments, with funds from the transaction aimed at enhancing liquidity.

CEO Scott Wells emphasized that this sale is part of the Company’s strategy to optimize its portfolio and concentrate on its American and Airports segments while strengthening its balance sheet. He expressed gratitude to the team members in the Latin American regions for their contributions. Federico Diez, President of Global Vía Pública, highlighted the strategic alignment and growth potential this acquisition represents for their established Latin American operations.

The ongoing sales process for Clear Channel’s remaining business in Brazil is also noted. With the decision to divest these operations, the Company will report them as discontinued in compliance with U.S. Generally Accepted Accounting Principles. Consequently, these results will appear separately in financial statements moving forward, influencing past financial presentations.

Moelis & Company LLC served as the financial advisor for this transaction, ensuring the process aligns with Clear Channel’s broader objectives. Clear Channel Outdoor Holdings, Inc. is a leader in out-of-home advertising, continuously innovating through digital display enhancements and data analytics to connect advertisers with consumers effectively.

Caution is advised regarding forward-looking statements within this announcement, as outlined by the Private Securities Litigation Reform Act of 1995. The Company recognizes that expectations and strategies mentioned are subject to various uncertainties that may affect actual outcomes. Interested parties should consult the Company’s SEC filings for detailed risk factors.

In conclusion, the sale of Clear Channel’s business units in Mexico, Peru, and Chile represents a significant step in their strategic reorientation, reinforcing their focus on growth in key markets while optimizing financial performance. The leadership expresses optimism about the future trajectory of both Clear Channel and Global Vía Pública under the new structure.

Clear Channel Outdoor Holdings, Inc. is a prominent player in the out-of-home advertising sector, with a strategic focus on optimizing its business portfolio. The recent sale of its operations in Latin America reflects a shift in strategic direction, concentrating on enhancing core business segments in the U.S. The transaction was a significant financial move aimed at improving liquidity and is coupled with a commitment to innovation and operational efficiency.

The completion of the sale to Global Media US LLC enables Clear Channel Outdoor to strengthen its position in the U.S. market while shedding non-core international assets. This strategic move aligns with the Company’s focus on improving its financial health and expanding its presence in high-potential markets. The transition also underscores the Company’s commitment to delivering effective advertising solutions through its established media platform.

Original Source: www.prnewswire.com