French-outdoor signage giant JCDecaux has announced it has agreed to pay $1.2bn for APN.
It follows the announcement from oOh! Media, that it will purchase Adshel, the outdoor division of Here There & Everywhere, for $570m, with APN having a similar bid for the company rejected. JCDecaux’s purchase of APN was contingent on APN not acquiring Adshel, freeing up the deal to be completed following the announcement from oOh! on its successful bid yesterday.
Doug Flynn, chairman, APN, says, “The JCDecaux scheme is an attractive, all-cash transaction. The APN Outdoor board has unanimously concluded that it represents a compelling transaction for shareholders
James Warburton, chief executive and managing director at APN, says, “The recommended acquisition of APN by JCDecaux represents an excellent outcome for our shareholders, staff and partners. The proposal is testament to the position the APN holds in the Australian and New Zealand media sectors and our recent strong performance, winning and retaining key new contracts.”
Jean-François Decaux, co-chief executive at JCDecaux, says, “This acquisition is a significant milestone in JCDecaux’s history in Australia, which is the seventh largest advertising market worldwide, where we have been growing organically since 2000.
“APN Outdoor is complementary to our existing street furniture assets and through this acquisition, JCDecaux will be attractively positioned to provide a compelling proposition to compete more effectively in the Australian media market where Out of Home accounts for 6 per cent of advertising spend, of which almost 50 per cent is digital. Finally, we are delighted to enter New Zealand, a fast-growing market.”
The deal needs to be cleared by the Australian Competition and Consumer Commission, the Australian Foreign Investment Review Board, and potentially the New Zealand Overseas Investment Office, with the transaction expected to be completed by end 2018.