JCDecaux has entered into an agreement to purchase the Latin America business of Outfront Media for $82 million cash, subject to working capital and indebtedness adjustments.
\nThe outdoor advertising French giant will carry out the purchase through JCDecaux Latin America \/ Corameq, which is 85% owned by JCDecaux SA.
\nThe transaction is expected to close in the first half of 2016, subject to customary closing conditions, including regulatory approval.<\/p>\n
Once completed the sale Outfront Media’s international business will consist exclusively of its operations in Canada where, as of December 31st, 2014, it operated 5,984 displays, including the street furniture operations in Vancouver in partnership with JCDecaux, and generated revenues of $82.5 million for the year ended December 31st, 2014.<\/p>\n
This purchase follows that of Eye Catcher Media in Per\u00fa and the announcement of the definitive acquisition of CEMUSA<\/p>\n
A strategical move for JCDecaux\u00a0<\/strong><\/span><\/p>\n The operation is a strategic move for JCDecaux as it will reinforce significantly its leading position in Mexico, the 15th largest economy worldwide and the 2nd in Latin America, and consolidate the very fragmented Latin America Outdoor Advertising market with great opportunities to accelerate the ongoing digitalization of outdoor media assets.<\/p>\n With this acquisition, JCDecaux will confirm its number one position in Brazil and Chile and will become the market leader in Uruguay. The Group will be present in the 10 wealthiest cities in Latin America: S\u00e3o Paulo, Mexico City, Buenos Aires, Rio de Janeiro, Santiago, Bogota, Lima, Brasilia, Monterrey and Guadalajara.<\/p>\n As of December 31st, 2014,\u00a0Outfront Media’s Latin America business operated 11,390 total displays across Mexico, Chile, Uruguay, Brazil and Argentina, mainly in the large format and bus advertising segment. Revenues for the year ended December 31, 2014 reached the $72.5 million.<\/p>\n More than 55,000 advertising displays accross Latin America<\/strong><\/span><\/p>\n Jeremy Male, Chairman and Chief Executive Officer of Outfront Media, said: \u201cThe sale of our Latin America business is firmly in line with our strategy to increase focus on markets where we maintain a leadership position. Our operations will be in excellent hands under JCDecaux\u2019s stewardship.\u201d<\/p>\n Jean-Charles Decaux, Co-Chief Executive Officer of JCDecaux, said: \u201cThe acquisition of Outfront Media\u2019s Latin America business is a key milestone in our development on this continent, strengthening our N\u00b01 outdoor advertising position in the region with a strong platform to further accelerate our investment and development based on internal and external growth opportunities. With more than 55,000 advertising displays in Latin America, JCDecaux will even better serve cities and citizens, while providing exceptional visibility to the advertisers and their brands in 29 cities of more than one million inhabitants. In this unprecedented period of consolidation in Latin America, JCDecaux will be pleased to welcome Outfront Media Latin America teams as the great work that has been performed to date will be key to continue growing in the different countries.\u201d<\/p>\n Image over the headline.-<\/strong> Street furniture operated by JCDecaux in mexico.\u00a0\u00a9 JCDecaux\/Comareq.<\/span><\/p>\n Related Eastwindmarketing links<\/span>:<\/strong><\/span><\/p>\n