Quadrant to buy APN's share of advertising JV for $67m
Quadrant Private Equity is set to buy joint venture partner APN News & Media's interest outdoor advertising venture APN Outdoor for A$69 million ($66.5 million).
APN Outdoor has been run as a joint venture between APN and Quadrant since May last year when the Sydney-based PE firm bought a controlling stake for A$174.2 million back. At the time, the venture was valued at at A$272 million.
The two groups are now in exclusive discussions that are likely to see Quadrant assume full control. The key terms of the deal have been agreed - APN's interest is valued at 7.5x EBITDA - but legal documentation is still being completed.
Any agreed transaction transaction will be conditional on regulatory approval and Quadrant's debt funding arrangements.
The joint venture includes APN's outdoor advertising business in Australia and New Zealand, which manages over 50,000 panels, with formats ranging from digital and static roadside billboards to transit, rail and airport advertising. It also includes a 50% stake in Indonesia-based Rainbow Premium Outdoor.
In a release, APN said the transaction would assist in streamlining APN and provide increased flexibility around its existing assets.
"Quadrant has been a strong and supportive partner of APN Outdoor for the past 18 months and the business is well placed as the large format market increasingly adapts to the opportunities of digital media," said Michael Miller, CEO of APN.
"APN is continuing as an active investor in the Australian outdoor advertising market through our 50% interest in Adshel, reflecting our belief that small format will continue to be a strong segment in the outdoor market."
APN maintains its exposure to the Asian market through a 50% stake in Hong Kong Outdoor.
If the deal goes ahead, private equity will hold a significant interest in Australia's outdoor advertising market, with Champ Private Equity having acquired oOh!media in 2011 in a $163 million deal.
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