Clear Channel Outdoor Holdings, Inc. has sold its businesses in Mexico, Peru, and Chile to Global Media US LLC for $20 million, with potential additional earnings of $1.25 million. This strategy aims to improve liquidity and focus on core operations within America and Airports. The transaction reflects a step towards optimizing their portfolio and enhancing financial stability.
Clear Channel Outdoor Holdings, Inc. has finalized the sale of its operations in Mexico, Peru, and Chile to Global Media US LLC, known as Global Vía Pública. The transaction was executed as a simultaneous sign and close, yielding $20 million in cash at closing based on a $34 million enterprise valuation. Clear Channel may also receive an additional $1.25 million in earn-out, subject to customary adjustments, with the proceeds earmarked to enhance liquidity.
This transaction is part of Clear Channel Outdoor Holdings, Inc.’s strategy to enhance its portfolio and focus on its American and Airport segments. The decision to sell these businesses aligns with the company’s broader goal of optimizing its operations while strengthening its financial standing. The ongoing sales process for its remaining Latin American operations in Brazil reflects the company’s commitment to restructuring its business model strategically.
The sale by Clear Channel Outdoor Holdings, Inc. demonstrates a strategic shift towards enhancing core operations and optimizing financial health. The acquisition by Global Media US LLC represents a significant consolidation within the Latin American advertising landscape, poised to leverage resources for future growth. Overall, this transaction signifies the commitment to refining their operational focus amid evolving market demands.
Original Source: www.prnewswire.com
