Champ-owned Outdoor Media Operations has purchased outdoor advertising business Eye Corp from Ten Network Holdings in a deal expected to be worth $145m.
Under the Eye Corp deal Champ will pay A$120m after the deal is approved by the Australian Competition and Consumer Commission and a further A$25m three years later.
Eye Corp contributed $7.1m in earnings to Ten before interest, tax, depreciation and amortisation for Ten in the first half, down 36 per cent on year.
The deal will see Ooh Media (OMO) acquire Eye’s Australian and New Zealand businesses, as well as the US, UK and Indonesian operations.
However OMO intends to sell on the UK and US operations. However the company said in a statement that if both operations are not sold within an agreed timeframe, Ten ‘may choose, or be required, to reacquire them from OMO for nominal consideration.’
Chris Bregenhoj, executive director, Ooh Media says “It should be good for the market, our customers and suppliers. It’s a very highly competitive industry, outdoor advertising is the oldest source of advertising in Australia.”
Champ of course owns Trans-Tasman print and communications giant Blue Star Group, which it purchased five years ago, but it hired global investment bank Goldman Sachs last week, to oversee the sale of the struggling company.