OUTFRONT Media Inc. (NYSE: OUT) and Bell Media announced earlier this week that they have have entered into an agreement to sell the Canadian business of OUTFRONT Media to Bell Media, a wholly-owned subsidiary of BCE (TSX, NYSE: BCE).
The purchase price is C$410 million in cash, subject to certain adjustments and a holdback. The transaction is expected to close in 2024, subject to regulatory approval and other closing conditions.
Jeremy Male, Chairman and Chief Executive Officer of OUTFRONT Media, said: “The sale of our Canadian business highlights the value of our assets and will provide us with additional financial flexibility as we focus on our U.S. assets. While we will miss our Canadian colleagues, we know the business we have built together will be in excellent hands with Bell Media.”
As of December 31, 2022, OUTFRONT Media’s Canadian business operated 9,325 total displays in the country and generated revenues of U.S. $91.9 million during that year.
Stewart Johnston, Senior Vice-President, Sales and Sports of Bell Media, said: “The out of home category continues to grow in importance as a mass reach advertising vehicle, while digital formats allow for greater targeting capabilities. OUTFRONT’s diverse array of Canadian assets reinforces Astral’s dedication to delivering impactful, multi-channel marketing solutions, while accelerating Bell Media’s digital strategy. The synergy between OUTFRONT’s established expertise and our commitment to driving innovation will provide clients with tremendous opportunities on a true coast-to-coast footprint.”
Solomon Partners, L.P. is acting as financial advisor to OUTFRONT Media Inc. and Cravath, Swaine & Moore LLP and Davies, Ward, Phillips & Vineberg LLP, are serving as legal advisors. National Bank Financial Inc. is acting as financial advisor to Bell Media and Blake, Cassels & Graydon LLP is acting as legal advisor.