Clear Channel Outdoor is selling its Northern Europe out of home business to Bauer Media Group for 625 million US dollars. The Hamburg-based media grouped values the business with a 6,5 EBITDA-multiple.
It was only a matter of time before Clear Channel Outdoor sold its last major European businesses. Today, the US outdoor advertising company announced that it has entered into a binding agreement to sell its Northern Europe business to Bauer Radio Limited – a subsidiary of the German Bauer Media Group.
According to Clear Channel Outdoor (CCO), the agreed sales price is 625 million US dollars. The transaction is expected to be completed in the coming months, subject to regulatory approvals.
“This agreement to sell our Europe North segment is another important step in implementing our strategic plan to optimize our portfolio and focus on growing our Americas and Airports segments to organically improve cash flow and reduce debt on our balance sheet,” says Scott Wells, Chief Executive Officer of Clear Channel Outdoor Holdings. “I would like to thank our team for their hard work in reaching this agreement. Once this transaction is complete, we will have divested the majority of our European operations.”
Bauer Group adds outdoor advertising to its portfolio
Bauer is a 150 year old family-owned media group with an annual revenue of 2bn Euro whose portfolio includes print and online publications as well as audio entertainment. Bauer Radio Limited is one of the leading private radio providers in the United Kingdom.
Yvonne Bauer, CEO of Bauer Media, comments: “This acquisition is a decisive step in driving forward the realignment of our group. By growing our core media and related businesses while driving our digital transformation, this move expands our capabilities and strengthens our position as a key player in the highly competitive media industry. We look forward to welcoming the team to Bauer Media. Together we will create a comprehensive and innovative media offering that meets the evolving needs of our advertisers and audiences in the region.”
The purchase price is subject to customary adjustments and represents a transaction multiple of approximately 6.5x of CCO’s Europe North business’ earnings for the twelve months to 30 September 2024.
Justin Cochrane, Chief Executive Officer of Clear Channel Outdoor UK & Europe, said: “We are excited to join Bauer Media Group to build on the strong foundation we have established in these European markets as part of Clear Channel Outdoor. The consistent top-line performance of our Northern Europe assets since the beginning of the year underlines the growing demand in these markets and the commitment of our teams to implementation for our customers and partners.”
invidis commentary by Florian Rotberg
Bauer Media from Hamburg surprises everyone with the acquisition of Clear Channel Northern Europe. The 150-year-old family-owned media company has so far been better known for TV guides, teenager weeklies and other magazines. With an annual turnover of more than 2 billion euros, Bauer also has investments in German TV stations (RTL2) and 150 radio and podcast brands in its portfolio. With 12,000 employees and 500 million magazines sold annually, Bauer Media Group is one of the largest media companies in Europe.
Now Bauer acquired Clear Channels Northern Europe business with estimated sales of around 600 million euros for the past year 2024. This makes Bauer Media a leading DooH provider and the market leader in Scandinavian countries. The new out-of-home business will be part of Bauer Radio Limited.
With the sale of Clear Channel Northern Europe, the US group has now sold almost all of its European subsidiaries. Among other things, TX Media / Goldbach acquired the Swiss Clear Channel business and JC Decaux CCO’s networks in Italy and Spain. However, the sale of Spain had to be called off a few weeks ago because the Spanish antitrust authorities vetoed it.
Impact on Germany?
For the time being, the deal does not affect the German DooH market, because Clear Channel was not represented in Germany. But with OoH sales of over 600 million euros, Bauer is now a relevant European market participant with big ambitions.
The Hamburg-based company is represented with its radio and podcast brands in nine European countries, including Denmark, Finland, Great Britain, Ireland, Norway, Poland, Portugal, Sweden and Slovakia.
In 2023, the DooH share of Clear Channel’s Northern Europe revenue amounted to 54.6 percent, growing 13 percent YoY. In contrast to the southern European Clear Channel country companies, the Northern Europe business is profitable.
