Clear Channel Outdoor to Sell its Swiss Business for $ 92.7 million
CCO's Swiss business is expected to contribute approximately $9.7 million for 2022
CCO in its continued review of its Euro OOH assets, sells their Swiss market for $92.7 million in an all cash transaction which is approximately a 9.5 times multiple adjusted EBITDA.
Company Continues Review of Strategic Alternatives for its European Businesses
SAN ANTONIO, – Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) (the “Company”) today announced it has entered into a definitive agreement to sell its business in Switzerland to Goldbach Group AG, an affiliate of TX Group AG, for CHF 86.0 million, or US$ 92.7 million1.
The Company’s Swiss business is expected to contribute approximately US$ 9.7 million, which excludes US$ 1.4 million in one-time items including rent abatements, to Europe Segment Adjusted EBITDA2 for the full year ended December 31, 2022. The all-cash consideration represents a transaction multiple of approximately 9.5x Segment Adjusted EBITDA contribution. The Company expects to hedge the anticipated proceeds to mitigate the risks related to foreign currency fluctuations, and the estimated taxes in connection with the transaction are expected to be less than US$5 million. The Company intends to use the anticipated net proceeds from the sale to improve its liquidity position and increase financial flexibility, subject to any limitations set forth in its debt agreements.
“The sale of our business in Switzerland is the result of our ongoing review of strategic alternatives for our European businesses and moves toward our goal of optimizing our portfolio in the best interests of our shareholders,” said Scott Wells, Chief Executive Officer of Clear Channel Outdoor Holdings, Inc. “This transaction allows us to exit a standalone and lower-priority market at a valuation that we believe reflects the quality of our Swiss assets, which are performing well.
“This transaction allows us to exit a standalone and lower-priority market at a valuation that we believe reflects the quality of our Swiss assets, which are performing well.
“Our review of strategic alternatives for our European businesses remains ongoing, and we will continue seeking the disposition of certain of our lower-margin or lower-priority European assets,” Wells continued. “We remain focused on our Americas business and executing our strategic priorities, which we believe will drive revenue growth and operating cash flow as well as improve our balance sheet over time.”
The transaction is subject to regulatory approval, receipt of a customary tax ruling with respect to a transaction-related reorganization and other customary closing conditions and is expected to close in the second or third quarter of 2023, depending on when the conditions to closing are satisfied.
There can be no assurance that the strategic review of our European businesses will result in any additional transactions or particular outcomes. We have not set a timetable for completion of these processes and may suspend these processes at any time.
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 500,000 print and digital displays in 24 countries.
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[…] advertising industry,” announced the sale of its Swiss business (full story here—Clear Channel Outdoor to Sell its Swiss) in late December 2022 for a reported $92.7 million and an estimated 9.5 […]