APN News & Media will acquire the remaining 50 per cent of outdoor media company Adshel for A$268.4m ($268.3M).
The move will see APN take 100 per cent ownership of Adshel, which specialises in outdoor street furniture media, with 22,000 static and digital panels across New Zealand and Australia..
During the last financial year, Adshel generated A$170m in revenue and achieved an EBITDA of A$42m. APN has already flagged outdoor and radio as the future cash cows of the company. APN says the acquisition will increase the company’s exposure to the growing out-of-home industry, which has surged 17 per cent during the past nine months to September.
Ciaran Davis, chieff executive at APN, says, “The acquisition of the remaining 50 per cent of Adshel continues APN’s significant transformation, placing APN in a stronger position in the Australian media industry by creating a proposition to deliver an integrated radio, outdoor, mobile and video offering.
“It will allow the Adshel management team to drive the strategic direction of the business and pursue opportunities that facilitate growth, including a continued focus on innovation and the progressive digitisation of the portfolio. As the demands of advertisers rapidly change this transaction will increase the effectiveness of implementing integrated marketing campaigns at scale, across all of APN’s businesses.” .