OUTFRONT Media to Sell Canadian Operations to Bell Media

24 Oct, 2023

OUTFRONT Media to Sell Canadian Operations to Bell Media

OUTFRONT Media Inc. (NYSE: OUT) and Bell Media have jointly announced a significant agreement to divest OUTFRONT Media's Canadian business to Bell Media, a wholly-owned subsidiary of BCE (TSX, NYSE: BCE). The deal, valued at C$410 million in cash, is subject to certain adjustments and a holdback. The transaction is anticipated to be completed in 2024, pending regulatory approval and the fulfillment of other closing conditions.

As of December 31, 2022, OUTFRONT Media's Canadian business had a significant presence, operating a total of 9,325 displays throughout the country and generating revenues of U.S. $91.9 million during the same year.

Jeremy Male, Chairman and Chief Executive Officer of OUTFRONT Media, expressed, "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."

Stewart Johnston, Senior Vice-President, Sales and Sports of Bell Media, emphasized the growing importance of the out-of-home category as a mass reach advertising platform, particularly with the advent of digital formats that offer enhanced targeting capabilities. The acquisition of OUTFRONT's diverse array of Canadian assets aligns with Astral's commitment to delivering impactful, multi-channel marketing solutions and accelerates Bell Media's digital strategy. The collaboration between OUTFRONT's established expertise and Bell Media's innovation-focused approach is expected to offer clients significant opportunities across a coast-to-coast footprint.

The financial advisory roles are filled by Solomon Partners, L.P. for OUTFRONT Media Inc., with Cravath, Swaine & Moore LLP and Davies, Ward, Phillips & Vineberg LLP serving as legal advisors. National Bank Financial Inc. is acting as the financial advisor to Bell Media, with Blake, Cassels & Graydon LLP providing legal counsel.

OUTFRONT Media Inc. is known for leveraging technology, location, and creativity to connect brands with consumers outside of their homes through one of the largest and most diverse sets of billboard, transit, and mobile assets in North America. Their technology platform is poised to revolutionize how advertisers engage audiences on-the-go.

Bell Media is a prominent content creation company in Canada, boasting premier assets in television, radio, digital, and out-of-home media. This includes a vast network of television stations, specialty channels, bilingual TV and streaming services, and a substantial out-of-home advertising network. Bell Media is an integral part of BCE Inc. (TSX, NYSE: BCE), which is the largest communications company in Canada. You can explore further at BellMedia.ca.