France Business Looking to Strengthen its
Leadership Position in the Outdoor Advertising Market Under Local
Ownership
SAN
ANTONIO, Oct. 18, 2023 /PRNewswire/ -- Clear
Channel Outdoor Holdings, Inc. (NYSE: CCO) (the "Company") today
announced that it has signed a share purchase agreement to sell its
business in France to Equinox
Industries ("Equinox"), a Paris-based industrial holding company that
makes long-term majority equity investments. Equinox's Managing
Partners, Charles-Henri Rossignol
and Thibaud Caulier, have more than
20 years of investing and operating experience. In addition,
Didier Quillot, Equinox's Senior
Advisor, would participate alongside Equinox Industries in the
proposed transaction and would be appointed Non-Executive Chairman
of Clear Channel France upon completion.
"We are excited by this potential opportunity to grow Clear
Channel France's established position and experienced leadership in
the French outdoor advertising space," said Messrs. Rossignol and
Caulier. "We see enormous potential for Clear Channel France over
the coming years by accelerating investments in digital,
programmatic and other tools, forging new partnerships and
empowering management to be nimble and innovative to grow share.
Subject to completion of the transaction, we look forward to
continuing to build on management's vision for the business and
leverage our complementary platform, capital and expertise to
return this business to a path of growth and long-term
success."
"This transaction is another positive step forward in our
ongoing review of strategic alternatives for our European
businesses and would further enable us to advance our strategic
priorities in our America and Airports segments. At the same time,
it positions the Clear Channel France business and its team to
operate with greater agility and autonomy in the French market
under local, long-term owners," added Scott
Wells, Chief Executive Officer of Clear Channel Outdoor
Holdings, Inc. "Upon completion of this transaction, we will have
divested or agreed to divest all of our Europe-South segment
operations, a significant step toward our goal of optimizing our
portfolio in the best interests of our shareholders."
In the proposed transaction, Equinox would acquire full
ownership of Clear Channel France, which achieved turnover of
EUR 245 million in the year ended
December 31, 2022 and has
approximately 800 employees. As consideration for the transaction,
the Company would deliver Clear Channel France to Equinox
Industries at closing with approximately EUR
42 million of cash, subject to adjustment for related
customary items, tax and other costs, to support ongoing operations
of the business, and Equinox Industries would maintain the
approximately EUR 30 million
state-guaranteed loan held by Clear Channel France.
The Company duly informed and consulted the French employee
works council. The parties are aiming to complete the transaction
in the coming weeks, subject to satisfaction of customary closing
conditions. The transaction is not subject to regulatory
approval.
About Clear Channel Outdoor Holdings
Clear
Channel Outdoor Holdings, Inc. (NYSE: CCO) is at the forefront of
driving innovation in the out-of-home advertising industry. Our
dynamic advertising platform is broadening the pool of advertisers
using our medium through the expansion of digital billboards and
displays and the integration of data analytics and programmatic
capabilities that deliver measurable campaigns that are simpler to
buy. By leveraging the scale, reach and flexibility of our diverse
portfolio of assets, we connect advertisers with millions of
consumers every month across more than 470,000 print and digital
displays in 21 countries.
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements in this press release constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. The words "believe,"
"expect," "anticipate," "would," "estimate," "forecast," "goals,"
"potential," "targets" and similar words and expressions are
intended to identify such forward-looking statements. Any
statements that refer to expectations or other characterizations of
future events or circumstances, such as statements about our
expectations with respect to the timing, closing, satisfaction of
closing conditions and benefits of the proposed transaction;
our strategies with respect to the Company's European portfolio and
our expectations of optimizing our portfolio; the continuing
reviews of strategic alternatives for our European businesses; our
expectations with respect to our America and Airports segments; and
our business plans and strategies are forward-looking statements.
These statements are not guarantees of future performance and are
subject to certain risks, uncertainties and other factors, some of
which are beyond our control and are difficult to predict.
Various risks that could cause future results to differ from
those expressed by the forward-looking statements included in this
press release include, but are not limited to: the delay or failure
to satisfy the conditions to divest our French business; the impact
of the continued strategic reviews of our European businesses and
assets, including failure to realize their benefits; our inability
to complete any other transactions with respect to our European
businesses and improve our portfolio; continued economic
uncertainty; an economic slowdown or a recession; our ability to
service our debt obligations and to fund our operations, business
strategy and capital expenditures; the impact of our substantial
indebtedness, including the effect of our leverage on our financial
position and earnings; the difficulty, cost and time required to
implement our strategy, and the fact that we may not realize the
anticipated benefits therefrom; the impact of future dispositions,
acquisitions and other strategic transactions; risks of doing
business in foreign countries; fluctuations in exchange rates and
currency values; volatility of our stock price; the impacts on our
stock price as a result of future sales of common stock, or the
perception thereof, and dilution resulting from additional capital
raised through the sale of common stock or other equity-linked
instruments; our ability to continue to comply with the applicable
listing standards of the New York Stock Exchange; the restrictions
contained in the agreements governing our indebtedness limiting our
flexibility in operating our business; and certain other factors
set forth in our filings with the SEC. You are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date stated, or if no date is stated, as of
the date of this press release. Other key risks are described in
the section entitled "Item 1A. Risk Factors" of the Company's
reports filed with the SEC, including the Company's Annual Report
on Form 10-K for the year ended December 31,
2022. The Company does not undertake any obligation to
publicly update or revise any forward-looking statements because of
new information, future events or otherwise.
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SOURCE Clear Channel Outdoor Holdings, Inc.