Clear Channel Outdoor Holdings, Inc. has sold its businesses in Mexico, Peru, and Chile to Global Media US LLC for $20 million, with a potential earn-out of $1.25 million. This strategic sale allows the company to enhance liquidity and prioritize growth in its Americas and Airports segments. The transition indicates the firm’s focus on optimizing its portfolio and improving financial health.
Clear Channel Outdoor Holdings, Inc. has finalized the sale of its operations in Mexico, Peru, and Chile to Global Media US LLC. The transaction was completed in a simultaneous sign and close, netting the company $20 million upfront, with an additional potential earn-out of $1.25 million expected. These funds are earmarked for strengthening the company’s liquidity position. CEO Scott Wells emphasized this strategic move to optimize their portfolio and focus more on the Americas and Airports segments.
The sale marks a significant shift in Clear Channel Outdoor’s strategy, allowing the company to concentrate on its core markets and improve its financial stability. This divestment of Latin American assets comes amid ongoing sales activity in Brazil. As part of accounting regulations, these operations will be classified as discontinued, with impacts reflected in future financial statements, ensuring transparency in reporting.
Overall, Clear Channel’s sale of its Latin American operations underlines its intent to streamline and fortify its business strategy. By reallocating resources to enhance liquidity and focus on more profitable segments, Clear Channel aims for improved performance in the future, highlighting a commitment to consistent growth and strategic focus.
Original Source: www.prnewswire.com
