Adrian J Cotterill, Editor-in-Chief
CBS Outdoor Americas Inc. (NYSE:CBSO) announced Monday that it had executed a definitive agreement to acquire certain outdoor advertising businesses from Van Wagner Communications, LLC for USD 690 million in cash.
CBSO will acquire approximately 1,100 large format billboard displays in 11 top U.S. markets. Total 2013 revenues of the acquired assets were USD 206 million.
Jeremy Male, CBS Outdoor Americas Inc. Chief Executive Officer said “We’re very pleased to be announcing an exciting transaction regarding this high quality group of outdoor assets. It’s a unique opportunity that aligns perfectly with our top-market growth strategy and will enhance the scale, quality, and depth of our portfolio which we believe will be great for our advertising partners. Further, we expect the Van Wagner assets to contribute significantly to our REIT operations, driving increased shareholder value.”
Richard Schaps, Chief Executive Officer of Van Wagner, was quoted as saying “After having spent more than 40 years building Van Wagner’s outdoor advertising business into a leading industry participant, I am delighted to be turning this division over to CBS Outdoor, a great organization with outstanding new leadership who can grow this business into the future. Van Wagner will now focus on building our Sports and Entertainment group as well as our leading Blimp and Aerial division.”
CBS Outdoor Americas Inc. intends to hire some people from the Van Wagner team to sell, service, and grow the enhanced outdoor portfolio.
The acquisition is subject to regulatory review and other customary conditions and is expected to close early in 2015. We note that Peter J. Solomon Company, along with Centerview Partners and Goldman, Sachs & Co. are acting as financial advisors and Jones Day is acting as legal advisor to CBS Outdoor. Wells Fargo has provided committed financing in support of the acquisition.
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