The biggest players in Australia’s Out of Home (OOH) market are bulking up via acquisitions.
Yesterday oOh!Media announced it will buy Adshel, which owns street furniture and rail assets, for $570 million from Here, There & Everywhere.
And today global OOH company JC Decaux said it is buying APN Outdoor for $6.70 a share, which values the company at $1.2 billion.
This week’s announcements follow put an end to the bidding war for Adshel between oOh!Media and APN Outdoor. During the process APN Outdoor itself became the subject of an acquisition itself from French company JCDecaux.
Last year oOh!Media had planned to merge with APN Outdoor, which would have created a combined company worth $1.6 billion. But the companies scrapped the deal after the ACCC raised competition concerns.
The Adshel acquisition is also subject to ACCC approval, while the JC Decaux acquisition must get the green light from the ACCC, the Australian Foreign Investment Review Board and the New Zealand Overseas Investment Office.
The board of directors of APN Outdoor have unanimously recommend that APN Outdoor shareholders vote in favour of the deal.
“The JCDecaux Scheme is an attractive, all-cash transaction. The APN Outdoor board has unanimously concluded that the scheme represents a compelling transaction for APN Outdoor shareholders,” said APN Outdoor Chairman Doug Flynn.
For oOh!Media, Adshel will add more than 21,000 poster faces and 800 screens to its network, extending its reach to 92 per cent of the Australian population and 87 per cent of the New Zealand population.
“oOh!media has a history of developing a diverse product portfolio to offer advertisers a range of audiences,” Brendon Cook, CEO of oOh!Media said.
“Adshel is complementary to our existing portfolio and we are excited to be entering the new segments of street furniture and rail. The digitisation opportunity in the Adshel business is expected to provide a significant avenue for further growth beyond what has been achieved to date. We are confident that oOh! shareholders will enjoy the benefit of cost synergies arising from the acquisition.”