Last Tuesday, JCDecaux, an outdoor advertising giant, was able to venture further into the Australian market. It is set to acquire APN Outdoor, an ad group that is based in Australia, in a deal that is worth $1.119 billion. The deal follows a series of consolidation in the Australian market.
The said deal is still subject to a clearance by the Competition and Consumer Commission, the Aussie regulator.
JCDecaux is set to pay A$6.7 in cash for every share of APN Outdoor – pricing the firm at approximately A$1.1 billion. However, the international outdoor giant has agreed to the 1.119 billion deal after its initial $1.1 billion bid was rejected last week.
The co-chief executive officer of JCDecaux, Jean-François Decaux, stated: “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.”
He added: “APN Outdoor is very 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 six 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.”
APN is one of the most prominent out-of-home media companies in New Zealand and Australia. It operates large billboards and rail, airport, and transit advertising. The said deal will provide JCDecaux with the large format billboards of APN as well as some other outdoor assets in the rail, airport and transit markets. It will also allow the French-based brand to enter New Zealand, via the trans-tasman assets of the company.
The acquisition arrives hot on the heels of a major acquisition by Ooh Media, APN Outdoor’s rival company, which outbid APN to acquire AdShel, a street furniture company.