SAN
ANTONIO, Feb. 6, 2025 /PRNewswire/ -- Clear
Channel Outdoor Holdings, Inc. (NYSE: CCO) (the "Company") today
announced it has completed the sale of its businesses in
Mexico, Peru and Chile to Global Media US LLC, doing business
as Global Vía Pública in a simultaneous sign and close
transaction.
The Company has received $20
million cash at closing based on a $34 million Enterprise Value. The Company is also
eligible to receive an additional $1.25
million earn-out. The consideration may be subject to
further customary adjustments. The Company intends to use the
anticipated net proceeds from the sale to improve its liquidity
position.
"The sale of our Mexico,
Peru, and Chile businesses further demonstrates the
progress we are making to optimize our portfolio and focus on
growing our America and Airports segments while strengthening our
balance sheet," said Scott Wells,
Chief Executive Officer of Clear Channel Outdoor Holdings, Inc.
"The completion of this transaction reflects the commitment and
dedication of our team, and I would like to thank all of our
colleagues in these markets for their hard work."
"This transaction aligns with our strategic goals and
strengthens our established Latin American business," said
Federico Diez, President of Global
Vía Pública. "We are excited about the opportunity to continue
driving business growth and leverage our media platform and teams
to deliver dynamic outdoor advertising campaigns for our
customers."
The sales process for the remaining Latin American business in
Brazil is ongoing.
Accounting Treatment
During the fourth quarter of 2024, the Company's plan to sell
the businesses in Mexico,
Peru and Chile met the criteria to be reported as
discontinued operations. In accordance with U.S. Generally Accepted
Accounting Principles, starting with the release of the Company's
fourth quarter 2024 results, assets and liabilities of these
discontinued operations will be presented separately in the
Company's Consolidated Balance Sheets, and results of discontinued
operations will be reported as a separate component of consolidated
net loss in the Company's Consolidated Statements of Loss, for all
periods presented, resulting in changes to the presentation of
certain prior period amounts.
Advisors
The Company engaged Moelis & Company LLC as financial
advisor to assist with the process to sell the Company's Latin
American businesses.
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.
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 "expect,"
"anticipate," "estimate" and similar words and expressions are
intended to identify such forward-looking statements. In addition,
any statements that refer to expectations or other
characterizations of future events or circumstances, such as the
use of proceeds from the sale of our Mexico, Peru
and Chili businesses, our expectations with respect to optimizing
our portfolio, our expectations with respect to our America and
Airports businesses, our business plans and strategies and our
liquidity 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 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, 2023. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press
release. 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.
