JCDecaux SE (Euronext Paris: DEC), the number one outdoor advertising company worldwide, announces that it has entered into agreements with Clear Channel Outdoor Holdings, Inc. to acquire its businesses in Italy and Spain. These deals were conducted independently and address different market opportunities. The total consideration (cash – debt free basis) is €15.1 million ($16.2 million) for Clear Channel Italy and €60.0 million ($64.4 million) for Clear Channel Spain representing 6.7x last 12 months EBITDA at the end of March 2023, on a combined basis for the two countries, pre-synergies.

The completion of the transaction in Italy will occur tomorrow with net consideration of €9.3 million, after taking into account customary closing adjustments, while the closing in Spain should occur in 2024, after regulatory approval.

These acquisitions will complement JCDecaux’s presence in Italy and Spain and enable the Group to address customers and public as well as private landlords’ needs better than ever, in an increasingly digitised outdoor advertising market. In both countries, Clear Channel benefits from a nationwide network with operations in several outdoor advertising segments.

Jean-Charles Decaux, Co-CEO of JCDecaux, said: “These two independent acquisitions are part of JCDecaux’s selective external growth strategy. The acquisition of Clear Channel’s businesses in Italy and Spain (subject to standard regulatory approval in the case of Spain) will extend JCDecaux’s footprint in established regions, thereby boosting the Group’s momentum and development. We are pleased to continue our alliance in Italy with the Du Chène de Vère family, formed more than twenty-years ago. This acquisition of CCI will allow us to develop IGPDecaux on a highly dynamic market. The JCDecaux and Clear Channel teams will harness their combined expertise to fulfil the expectations of advertisers, cities and citizens alike, to develop more than ever a service-oriented and sustainable media.”

Billboard Insider’s Take:  Selling assets at 6.7 times cashflow won’t do anything to reduce Clear Channel Outdoor’s high 10:1 Debt/Cashflow but it removes an underperforming group of assets which diverts capital and management attention from higher margin US assets.  Clear Channel stock rose 5.5% in afterhours trading yesterday after the news was announced.