Clear Channel Outdoor Holdings, Inc. announced it has entered into a definitive agreement to sell the businesses constituting its Europe-North segment to Bauer Radio Limited, a subsidiary of Bauer Media Group. The expected purchase price for the transaction is $625 million in all-cash consideration, subject to customary adjustments. This represents a transaction multiple of approximately 6.5x Europe-North segment results for the twelve months ended September 30, 2024.
Scott Wells, CEO of Clear Channel Outdoor, stated that this agreement is a significant step in executing the company's strategic plan to optimize its portfolio. The focus is on growing the America and Airports segments to organically improve cash flow and reduce leverage on the balance sheet. Upon completion, the company will have divested the substantial majority of its European operations.
The anticipated net proceeds from the sale, after payment of transaction-related fees and expenses, will be used to prepay in full the outstanding CCIBV term loans in the principal amount of $375 million, plus any accrued interest. The remaining net proceeds will be subject to the asset sale provisions of the agreements governing the remainder of the company's indebtedness. The transaction is expected to close in 2025, pending regulatory approvals.
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