You might have noticed the change above from Johnsen Fretty on this mornings Email blast.  We reached out to Jim Johnsen for the sale details.

Jim, I see you just closed an outdoor transaction recently on the east coast?

That’s right John, we helped a company by the name of Advertising Inc work through a sale process that ultimately resulted in the sale of their outdoor assets to a fast growing Company by the name of Kegerreis Outdoor.

Can you tell me what prompted the sale Jim?

Advertising Inc’s President (and one of the grandsons of the founders), Doug Wright decided that it was finally time for semi-retirement (he will continue to run the families’ real estate interests and the commercial sign business) and unfortunately the next generation all pursued careers in other fields so he didn’t have anyone to pass the baton to.

I know you have seen lots of different situations over the span of the last 28 years, but anything unique about this one?    

As mentioned, Advertising Inc was a 3rd generation company that was actually the merger of Potomac Poster Advertising and Advertising Inc back in the 50s.  After the merger, 2 separate families owned the stock of the merged entity, Advertising Inc.  It’s rare to see a merger in the industry, let alone one that has stood the test of time with many descendent owners.  One of the things the Company did right was to have a strong Board of Directors that represented the interest of the 26 +/- shareholders.  I got a chance to meet and interface with them several times and was impressed with their level of questioning on how best to achieve an exit that maximized the outcome for all shareholders.  Third generation outdoor advertising companies are much rarer these days.

Can you give us some basics on the transaction?

As you know John, price is always confidential, so I can’t provide that, but I can tell you that Advertising Inc had 170 Faces in the markets of Hagerstown MD, Winchester VA and Chambersburg PA.  While at first blush it seemed like a suburban plant, roughly 70% of the plant sits within the Washington DC DMA.  The Seller received a strong multiple based on current earnings.  We suspect, however, the buyer will exploit a number of digital conversion opportunities.

Thanks Jim.  Anything else you would like to mention?

It is one of those rare instances where it was a happy occasion for all parties.  This deal, like all deals, had its challenges, but everyone involved in the transaction showed a tremendous spirit of collaboration to get a deal done.  For Kegerreis, I believe the transaction was transformative.  Prizes like this only come along once in a lifetime.  Austin Kegerreis runs a tight ship and I think he is going to do some great things with Advertising Inc.  Doug Wright and all the shareholders of Advertising Inc are very happy.

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